Markets were very "shaky waiting for minutes from fed meeting"...what dissappointed markets the most was the realization...that Fed was way behind the curve in dealing with sub-prime issue which is eating away....consumers confidence........
Fed did REACT after the minutes were written...by cutting the rate on discount window by 1/2%......previous friday.......
Markets are "pressuring feds to cut fed funds rate by 1/2% to regain the confidence of investors & consumers"...there is a very good chance that it will happen !!!!
Markets are very choppy but it is OVERSOLD now......so expect a REBOUND on wed ......
It is very "prudent to stay in strong stocks...because they will recover faster than 2nd or 3rd tier stocks"
Needham analyst gave a "buy" repeat to SNDK with $65 target today...so SNDK stayed green in this terrible tape.
Decline ratio & decline volume were extremely BEARISH....so was the new low list.....generally a sign before "snapback".....
Please continue doing your due diligence and find your own comfort level with exposure & stock selections.
BLOG does not give buy or sell.
Saleem
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