Summer (3rd bottom) Target levels

As mentioned in the last post, I expect a 3rd leg down on the markets this summer. If recovery (or stabilization) is in the wake for last this year, US Stock Markets would provide the next large leg down to be the 3rd bottom and a decent entry points for selective buying of high quality, low-debt, strong business Cos.

Roughtly, I am targetting to wait for these levels:

S&P: ~ 600, NASDAQ : ~1200, Dow: 6300~6400 (Exact target nos. to come out when/if this down leg eventually starts later :- this-spring/early-summer)

Basically another round of cleansing to ~10% from March-6th lows before initiating another round of selective buying. This buying will be provided we see enough divergence on charts to conclude that it’s a safe buying opportunity. Till then cash, hedged and some safe bets (INTC, GE, GLW, LLY,) are only holdings.

Also, do take at this nice video clip.
http://www.forbes.com/2009/01/23/intelligentinvestinggrantham.html

Covers a broad range of investment topics and sets the long term perspective right from here on, in a simple 25 min Video interview.

Enjoy the Game.