Dow 9000

The markets have been more volatile as of late. Swings of 200 points have occurred more than once in recent weeks whether it be red to green or vice versa. The result is a combination of technicals running ahead of fundamentals, performance anxiety, fund withdrawal, etc. On top of that, there has finally been a blip in negative sentiment. Economic data coming in is painting a more clear picture. Things aren't as rosy as most want to believe.

I reckon that most money managers have been riding the easy train this year after a disastrous 2008. I bet that most have been late to the party as well and are trying to keep this train moving. But, they're riding on hope and that only gets you so far.

Data was released today showing over 500,000 people initially filed for unemployment claims within the last couple of weeks. Stimulus is being extended. Homes are stuck in an inventory glut. Personal assets are still way down. Small businesses are continually shuttering doors. This is what we are faced with and it's not getting any better.

I expect the Dow to come back down to 9,000 or below before it shots up. That's the call.