Sell off in all assets...

With prices across all assets breaking below key technical levels, we may see some deep sell offs in stocks, commodities, and forex. The notion of a recession seems to have settled within the mainstream, so there is more room to short various markets. The key will be on timing, of course, and a trader who is short the market should not be faked out by sharp intra-day rallies. The biggest challenge, however, is choosing the right moment to cover and go long. A market reversal to the upside will be hard to time, and highly dependent on action by the Fed (forget about fiscal stimulus). Good luck everyone.

2008 Forecast

1. Fed funds rate: 3%
2. Crude: $125
3. Gold: $1,100
4. Silver: $22
5. Nikkei: 22,000
6. My weight: 155 lbs
7. Google: $900
8. China (FXI): $400
9. Beer 6-pack: $20

HAPPY NEW YEAR!!!