11,500

So it's coming, a big correction is looming and you have to ask yourself, do you have cash on the sidelines ready to take advantage when the time is right?

JJ: i wonder if this is the beginning of the 20% correction
JJ: down to like 11,500 for the DOW
JJ: i think some of the more conservative types
JJ: (including the Fed)
JJ: think that is a more realistic level

John: I agree the recent economy is way over inflated and one has to ask what has the recent good times been based on? The apple iPhone?

To me, it's all false hope that has been driving the recent good times. The average cost of living for america has gone up and the average worth of a dollar has gone down. Meanwhile... salaries are not moving. What it means is... America is buying on borrowed money. America is living on borrowed money and frankly... in the short term it means, as my buddy JSeezieFoShizzie likes to say, "sexy times"

People are getting what they want. But now... now that they have maxed out their credit cards, they're coming back down into reality "that shit... I can't spend like I used to" and "oh man, that 'credit' thing is kinda important."

So now... back to normal spending... and worse for the economy it's time for the consumer to start paying back what it borrowed. So with that being said, YES! the DOW should be back around 11,500. I hope to see you all there with money in hand.

Time to double down

So I've made some solid bets so far in 2007 and I've cashed out on my short terms shares already. With the recent loan crisis and subprime crash, opportunity is everywhere but especially with a handful of proven winners! Time to restock!

So here's what I see:

LOOP (LoopNet): I originally got in at 14 and it shot up to 27. This morning, it clocked in at 17.85 and for a company who has beaten estimates 5 quarters in a row, I think this is a bargain price to get in at.

VLO (Valero): We got in on this badboy at 50 and it shot up to 78. Right now it's back at 60 and it's still dropping. It's still driving season and I'm telling you right now, oil is not coming down especially with Labor Day looming. I'll be looking much more seriously at our country's dominant sour crude refinery at around $55

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Newbie to the BaggerJohn Radar is BWLD (Buffalo Wild Wings): The stock exploded from $8($15) to $95($48) this year and then split. it's down to $32 a share from the post-split price of $48 and I'm definitely going to take a lookie.