- Crescenzi: Claims Level Suggests End to Job Losses
- Schork Oil Outlook: Gas Bulls Pinning Hopes on Mother Nature
- Busch: The Debt-Interest Rate Paradox
- Busch: Markets Smell a Country Rat
- Schork Oil Outlook: Mission Impossible For The Bears?
- Losey: Asset Allocation At Retirement
- Farrell: Obama Hectored, Ignored and Restricted?
- Don't Dwell on Investment Mistakes; Move on, Like Buffett
- Hirschhorn: Greed...or Fear
- Schork Oil Outlook: Some New Hope For Nat Gas Bulls
MOST SHARED
- Kuoni CEO Sees Recovery in Travel Sector
- Dubai Struggles to Ease Debt Fears; Investors Rattled
- Gold Retreats from Record High as Dollar Rebounds
- China Unveils Carbon Target Ahead of Copenhagen
- Fannie Mae to Tighten Lending Standards: Report
- US Markets Bracing for Selloff On Worries About Dubai's Debt
- Euro Shares Record Biggest Drop in 7 Months
- Great Britain, No Longer That Great: Investor
- Hyundai-Kia Targets Rapid China Growth in 2010
- Chinese Overcapacity is Worsening, EU Chamber Warns
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Revenge of the Gangsta Nerds
- Will TCU See The "Flutie Effect?"
- Retail Earnings and Sales to Improve in Q4: Analyst
- Consumers Catching the Holiday Spirit
- It's Beginning To Look A Lot More Riskless
- Crescenzi: Claims Level Suggests End to Job Losses
- Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'
- US Markets Bracing for Selloff on Dubai Debt Worries
- Dubai Struggles to Ease Debt Fears; Investors Rattled
- US Dollar Falls to 14-Year Low Against the Yen
- UK's Darling to Downgrade 2009 Growth Forecast
- US Companies Already Moving on Curbing Emissions
- Fannie Mae to Tighten Lending Standards: Report
- Investing in Good Karma – and Making a Profit
- Retailers Should Believe in Christmas Miracles
- Bankruptcies Jump, Hitting Highest Level in Four Years
RSS FEED
CNBC Guest Blog
Text Size 
Dr. Janice Dorn
Chief Global Risk Strategist
Ingenieux Wealth Management, Sydney
Those who followed our guidance of the Big Rollover in October, 2007, and went to cash or learned to trade the inverse index ETFs have done well. We are now some 6,000 points lower on the $INDU!
Our call to close all index shorts on Friday and begin to nibble on the indices yesterday has been profitable, and we are most fortunate to have caught this part of the move.
As we wrote in Sunday’s “Shrink Rap: Where The Heck Are We?—The Markets And Gold,” the bottom will be recognized in hindsight. We need to see a strong up day on volume and then wait for a follow-through day. That follow-through could come several days later. When it comes, it is likely to be a decent rally that will slog its way up in staircase (not “V”) fashion. This looks likely to be the last chance to get out and ride it up before the next carnage begins—probably sometime in the early part of the third quarter of 2009.
This is one of the emotionally disturbed markets that we have ever seen. Due to the severe nature of the emotional breakdown that these markets have suffered—a prolonged and vicious downward spiral that is sometimes called a nervous breakdown but is best described as a rapid- cycling manic depressive disorder—it will take time to recover.
The recovery will not be rapid, and there may be more pain ahead because of the internal damage that has been done. The markets have suffered severe chronic pain and crashing fatigue. Time is needed to rebalance and restore some degree of internal homeostasis. This the base from which a recovery, albeit for a few weeks to months, can begin.
Other CNBC.com Guest Bloggers Saying ...___________________________________
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.
Data is a real-time snapshot *Data is delayed at least 15 minutes