Market Overview: I s*&^&%$ up

Okay, let me start my saying that I have been horribly horribly wrong about the market.

Normally, I am the most optimistic person in the group (my group have a blog Renewable Sources - Check in my profile) regarding the market and I still am in the long term. But, in the short term, I believe that Dow is way above what it should be and it will pull back to 11200-11500 within the next two quarters.

In fact, I have put my money where my mouth is by being almost all cash in my non retirement portfolio. I only own few stocks of my ex-employer and that too because I feel it is highly undervalued and is a right takeover target. More about that in another post. Last 6 months, I was busy with my day time consulting work followed by a 6-7 weeks travel to India to visit my family and Europe for work and learning french language. I didn't track the market on a regular basis last 2-3 months, but I was always looking for a pull back and keep a tab on it 2-3 times a week. There wasn't any big one to let me enter comfortably

I think market is just zooming up due to momentum and is not based on any solid foundation. Few reasons that I will elaborate in next posts

1> Weak Housing market
2> Slowing consumption
3> Hiring pull back by corporations

And like all things in life, these three will feed off each other to form a spiral down. I know the main points above have been in the press for a long time. I hope I will be able to create a concise story of what is going to happen that will result in a pull back of the scale that I am talking.