WILL THE DJIA GO BELOW 11,000 BEFORE THE ELECTION?

YES. MY GUESS IS PROBABLY AROUND 10,800.

DESPITE THE COMING INEVITABLE EURO/EUSSR MELTDOWN AND THE ENSUING FLIGHT TO SAFETY.

ASIAN STOCK MARKETS ARE DOWN NEARLY 20% ON THE YEAR.

AND THE U.S. ECONOMY IS JUST VERY WEAK:

• DEMAND IS WEAK; 
• UNEMPLOYMENT IS HIGH AND CREEPING UP; 
• GAS WON'T GET MUCH CHEAPER;
• THE HOUSING MARKET SUCKS;
• STUDENT LOAN DEBT IS A BUBBLE ABOUT TO BURST;
• EXPORTS ARE GOING TO DECLINE SHARPLY;
• AND SO ON.

BUT AS IT BECOMES APPARENT THAT ROMNEY IS GOING TO SMASH OBAMA - AROUND LABOR DAY, THE MARKETS WILL BOUNCE BACK TO 11,500.

IF OBAMA GETS DESPERATE AND ATTACKS IRAN TO TRY TO GET RE-ELECTED THEN ALL BETS ARE OFF.

THE MARKET COULD GO AS LOW AS 9000. AND THEN BOUNCE BACK WHEN ROMNEY DEFEATS OBAMA.