Markets are in total disarray....tumbling through all support on a closing basis & on an intraday basis......
Dow is only 214 points away from intraday LOW......
Downside volume was horrendous...57 to 1 on NYSE & 49 to 1 on NASDAQ....these extreme selling pressure could amount to MAJOR capitulation in normal BEAR market...but this IS between BEAR & DEPRESSION...so who KNOWS when extreme selling is really defined....
Most technicians,traders & investors got this market WRONG and proved to be TOO OPTIMISTIC.....as this IS a UNIQUE set of events UNFOLDING @ the same time......
Financials are hitting deep new LOWS...Not a good sign......
So...we all sit & WAIT for this market to TURN decisively......which MAY be months AWAY.....
Today Fed IS predicting slowdown till middle of 09.......
It MAY be WISE to take FEW months WAIT & SEE attitude......Feb 09 MAY be a BETTER time to see the DAMAGE in WORLDWIDE economy.......& take it from there !!!!!
I am staying with Crude Oil ETF as my LONELY position......
BLOG does NOT give buy or sell.
Saleem
8 comments:
Hi Saleem,
How far are we from the previous low? Was it something like 7700? We have been going down for some time now, there should be a relief rally coming soon. I had dinner with an 84 y/o man from WWII era tonight. He admitted that he was scared of what was going on. After all he's been though,,,this worries him. That's something to think about.
Best Regards
IBD top 10-news--look at number 7 and 8--wow
Stocks Dive Below Recent Lows
The Nasdaq plunged 6.5%, the S&P 500 6.1% and the NYSE composite 6.1%, all to fresh 5 1/2-year lows. The Dow slid 5.1% to its first sub-8,000 close since March '03. Volume rose. Over 100 S&P 500 components suffered double-digit declines. Every industry group fell, led by transports, home builders, steel and financials. The 10-year T-yield dived 20 ticks to 3.34%. More
Oct. Consumer Prices Dove 1%
It was the biggest fall in 61 years, double forecasts. Plunging energy costs led the way, but air fares, apparel and autos also were cheaper. Core CPI, which excludes food and energy, unexpectedly fell 0.1%. Year over year, the CPI rose 3.7% vs. July's 5.6%. Lower costs will help cash-strapped consumers, but they reflect global economic woes. More
Housing Starts Hits Record Low
Builders broke ground on an annualized 791,000 homes in Oct., the slowest pace since records began in '59. That should eventually reduce the glut of unsold homes, but a flood of foreclosed properties and woeful sales activity mean inventories remain far too high. Demand for loans to buy a home fell last week to the lowest level since the end of 2000. More
Automaker Aid Looks Unlikely
GM (GM) and Ford (F) fell 10% and 25%, respectively, as it looked increasingly unlikely that Congress will pass a $25 mil rescue of the Big 3 this week. The heads of GM, Ford and Chrysler spent a 2nd day lobbying for aid; lawmakers blasted them for, among other things, flying private jets. Bankruptcy isn't an option, GM and Ford said. Ford said auto sales have been terrible this month.
Fed In Oct. Saw Long Downturn
Oct. 28-29 meeting minutes show Fed officials saw a U.S. contraction from 2nd-half '08 to the 1st half of '09, with weakness persisting. Policymakers hinted deflation could become a problem. They cut the fed funds target rate to 1% at that meeting and said they're ready to do more. The effective fed funds rate is far lower. More
Insurers Back Nat'l Health Care
A group representing medical insurers said it will support overhauling health care system, but wants Congress to mandate that everyone must buy coverage. The America's Health Insurance Plans endorsed a plan backed by some Dems. Pres.-elect Obama favors mandated coverage for kids, but not adults. More
Daschle Picked, Clinton In Talks
Pres.-elect Barack Obama has chosen ex-Senate Majority Leader Tom Daschle to be Health and Human Services sec'y, reports said. Daschle lost his N.D. Senate seat in '04. Dems say Hillary Clinton is a top choice for Sec'y of State, but Obama's aides first want a full accounting of Bill Clinton's financial ties to foreign gov'ts and companies.
Al-Qaida Leader Slams Obama
Ayman al-Zawahri, al-Qaida's No. 2 leader, used a racial epithet to insult Barack Obama, and said the pres.-elect will simply do the bidding of whites. The 11-minute video appears aimed at persuading Muslims not to trust the new U.S. leader. The State Dept. derided the tape as "despicable comments from a terrorist."
BASF Idles Plants, Cuts Outlook
The world's No. 1 chemicals maker said it'll temporarily close 80 plants and cut production at 100 other facilities. BASF (BASFY) said 20,000 workers will be affected — 21% of global staff — but it doesn't expect outright layoffs for now. The German giant cited a "massive" drop in demand, especially from the auto sector. BASF also cut its '08 profit target. BASF's shares fell 15%.
Indian Frigate Sinks Pirate Ship
The Indian warship INS Tabar sank a suspected pirate ship after a brief gunbattle in the Gulf of Aden, an area that has seen a surge in ship hijackings by Somalia-based gunmen. Meanwhile, pirates succeeded in hijacking 2 more vessels in one of the world's busiest shipping channels. In the last week, pirates have captured 8 vessels, including a giant Saudi oil tanker.
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Hi Standards,
Most people around the world are "surprised" @ the depth of market fall with such speed....
I am sure many steps taken will bear fruit...the question is when the results & the confidence will return.....
I feel bad for 84 year old person...they should never have to worry about anything...
Saleem
Hi Saleem,
I agree with you. Everything is in place for a recovery. Confidence is another issue. With the Big 3 flying private jets and begging for money, it just sends a bad signal. After 2002 bust, it took years for confidence to return,,,,but it did. Best money made by buying at the lows.
Have a great week.
Hi salim, all
Aything good to buy.I am 100 % cash.no position. thanxs
Hi Ds,
Wait till market TURNS.....
Everything is DEEP RED now...
Short is the only game....
Saleem
Hi all
Do not short this market
We could turn on a dime
We are so over sold --- it hurts
Nothing is sacred!
Good luck all
For an interesting play look at DSX today
upgraded!0-Nov-08 JP Morgan Upgrade Neutral Overweight
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