Something very strange is going on here (aside from a market implosion, which is strange enough).

Perfectly plausible and credible people are talking about buying the market.  Say what?  Haven’t you noticed that there is a market meltdown?  Forget all that Baron de Rothschild stuff about buying when there is blood in the streets.  If you buy now some of that blood will be yours.  Remember October-November ’08?  All those “smart” people buying the market bottom?  Except it didn’t bottom till March ’09.

Barron’s just came — “16 stocks that look good after  a Selloff”…Cody, Altschuler (always a dependable bull).  It is entirely possible that this market hasn’t even bottomed yet, and so to talk about snapping up bargains shows little respect for what is happening.  What is happening today is the 8th biggest downwave in history.

Our educated opinion is that trying to buy at this point would be trying to catch the falling knife.  Better to get a higher price and not need hand surgery.

Now look at this chart and review our letter on market targets.  The head and shoulders target is achieved.  The 3d of the rule of seven targets is achieved.  The naive think:  aha, time to buy.  The sophisticated think:  if these targets have been achieved so quickly what is the potential final target.

Play it smart.  Wait until an obvious bottom is in and there are signs of strength.

In the meantime, enjoy watching history made.