Market Meltdown...Going Forward

If you have been following the news, you should know that the stock market has tumbled recently. So is the market going to move up or continue to move down? I don't know. Who knows? Usually one can apply TA and make a forecast on the trend, however, when meltdown such as those we witness recently happens, TA & FA are no longer accurate.

But what I know is that the institutional investors are moving out of the market now. Themarket is really a manipulated market. Forget about whether the US subprime problem is really serious. What's more important is these institutional investors think it is serious. If more and more institutional investors move out of the market, stock prices will continue to fall.
This is a good lesson for all of us because we've seen again that the market is manipulated. At this point, no one talk about the fundamentals. No one talk about the prospects of a company. The market simply goes where the BIG money goes, as always, and the big money is controlled by the institutional investors.

Another important note is the government's interference. The government is another body that has the BIG money. So the government has the power to move the market too. We see that US, Europe and some Asia governments are pumping money into the system, hoping to soften the impact, keep the institutional investors in the market and attract those who have left the market to come back. Whether they can be successful in doing that depends on whether they have enough $$$ to pump in.

I doubt this meltdown will last as the governments are quite rich and think they will win the race. But only time can tell. Hence, for now, I suggest staying on the sideline until a clearer picture forms.