Bloodiest Of Days Scenario Now Within 7 Trading Days....

I believe my "Bloodiest Of Days" scenario outlined in my January 30th blog is now within 7 trading days of coming to fruition.  Technicals have continued to deteriorate, rallies are extremely pathetic and sold into almost immediately, there is no leadership anywhere, and we continue to make lower highs on all the indices.  As such I believe we are very much setting up to take out the January lows on this next downleg. Again, I reiterate there are no buyers in the market, and the hedge funds are putting extreme pressure on high beta techs and anything assuming high growth in their models...this is in addition to very heavy fund liquidation from funds around the globe.  I am initially looking for 11,100 -11.300 as a new near term low on the DOW, and am looking for the Nasdaq to test 2000.  However, once we take out the January lows which I believe will happen on extremely high volume, I believe we may possibly reach an ultimate bottom in the market, and it may be safe to begin taking long term positions in high quality growth stocks (I am working on a post outlining a few picks and will post it shortly). Anyway, we will revisit this thesis once the lows are taken out.  Again, as outlined in my January 30th blog, I am looking for a DOW plunge of 600-800 points and Nasdaq plunge of 125-150 in the next 7 trading days. In the meantime, continue to stay short the market or sidelined.

Good luck all.

Nostradamus