Every wall is a door. – Ralph Waldo Emerson

The markets are not free; corrections end at arbitrary points. In other words, the top players decide when the markets will correct and how far they will drop and or rise.This is why we focus on the trend and not absolute price targets as almost all free market forces have been removed. However, some individuals are still fixated to the idea of exact points, as opposed to the idea of viewing strong pullbacks as buying opportunities. 

This kind of mentality is what led these individuals to miss out on this 7-year bull market, and they look back sorrowfully wishing they had jumped in. What they forget is that they were doing the same thing today as they were doing yesterday; this is the reason this market is likely to trade much higher than most expect. Yes, the outlook certainly does not look rosy right now, and things look dire right now, but this has always been the case. Look at a past previous market disaster and see if anything has changed. As soon as the markets started to pullback, the Doctors of Doom started to blow their trumpets. Fast forward and the financial markets have not ended.

This article is a perfect example of how the Media does nothing but fan the flames.

It was a bitter return for U.S. financial markets today, with the bellwether Dow Industrials badly battered, suffering their worst one-day point decline ever.The biggest losers on the day: airlines, major insurers face tens of billions of dollars in claims after last week’s attacks, as well as financial services, travel and hotels, and retail stocks.The biggest winners: defense and security stocks.

“There is obviously a movement downward and probably will continue for a while,” says Robert Hormatz, vice chairman of Goldman Sachs. “But after a point, people are going to see buying opportunities and will then start buying. What that occurs is awfully hard to predict.”Full Story

Oh just in case you did not figure out, the above excerpt is not from last week’s action though it sounds dangerously similar. The above comments were made years ago when the Dow was trading in the 8900 ranges.