Dorn: Cooler Heads Must Prevail
World markets are plummeting and the ES (E-mini futures on the $ SPX) just went limit down.
Limits come off at the open of the US Markets, and the next limit is a 10 percent down, so all holding index shorts should be able to get out, as will trapped longs.
Please read my blog from yesterday entitled: Markets Are Off Their Lithium. It looks like this is it and everything we have written to you over the past two weeks is playing out and the end-game is at hand.
All holding short index or gold positions may wish to cover into this downage and go to cash. Risk takers may consider moving slowly into index longs in tranches beginning on Monday.
Please remain calm and let this play out. This is not the time to panic. Those who have been in cash or only minimally invested since October, 2007 per the guidance of the Big Rollover are now well positioned to gradually deploy monies into the markets.
The toxic excesses of the past are now coming home and being flushed away. This is the cleansing that is a critical part of any detoxification process. We share the common bond of seeing history being made before our eyes. We are learning valuable lessons. This is a time to remain calm and centered and know that you are witness to what is likely to be a once-in-a-lifetime event.
Let us remind ourselves of the many blessings that we receive on a daily basis and be in deepest gratitude for our health and loved ones. Those that remain mentally, emotionally, physically, financially and spiritually grounded will survive and prosper through this crisis.
Janice Dorn, M.D., Ph.D., is a financial psychiatrist and chief global risk strategist for Ingenieux Wealth Management in Sydney, Australia. She also offer trading consulting and coaching services via her Web site, TheTradingDoctor.com.