All major indices have been trending down lately.....
All indices are near November LOWS......
So...in the last 60 days of tape action..we have gone nowhere .....
It is extremely discouraging to see that we are where we were back on Nov 19 2008???
So .....since May 16th 2008 when we were @ 1427.45 in S&P 500.....we have given back 595.50 or 41.7% based on Friday's close of 831.95......to look @ another way we are barely 79.51 above Nov 20th low of 752.44......after 8 months of downward trend we are still testing LOWS.....
If there is one technical indicator which is giving hope..it IS slow stochastic...it IS trending UP.....
So...why are we near lows & NOT well above 50 DMA 869.77 in S&P 500......
Based on historical pattern we should be half way towards 200 DMA which is 1148.97..I am implying 1050 area in S&P 500......
Based on the enormity of economic challenges...we are still TALKING not IMPLEMENTING actions.......
Republicans are still TALKING fiscal responsibility after DESTROYING the economy..HYPOCRISY @ its PEAK......instead of shutting UP & quick agreement..FOCUS is on PETTY POLITICS.....this is NOT democracy it is PURE partisanship..which has no place in these GRAVE economic environment.....
So Market is getting DISGUSTED & MAY give another JOLT to stock market to WAKE hypocrites to needed action......
Many sectors are outperforming the indices.....Gold,Silver,Education outfit are leading the charge,Bio techs are simmering UP.....
Until market gets the approval of $800 Billion stimulus.....it will remain in a WAIT & SEE mode !!!!
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hi Saleem,
I have noted the same rhetoric coming from around the world. Not much to do but wait and buy bargains.
Best Regards
Hi Standards,
War of words between US & China is not good.....accusing other of manipulating their currency.....based on what I have observed..every country manipulates their currency for their objective including US....
Saleem
HELL all
If I had cash and cash is King I would wait till all the smoking mirrors clear up.
The Politicians are so busy with the blame game they got no time to fix the situation.
We need a financial stimulus package passed now, IMHO,
Another Oil transportation ship was hijacked! Not good!
Will market stay green?? Gold seems to be a great play here.
Hi Madmax,
Politicians ALWAYS put "COUNTRY LAST"
Market IS trying to look past RHETORIC.....
Gold is comfortably above $900 now...but HSBC downgrading many gold stocks..but all of them are GREEN...must be downgrade motivated by $900 resistance...NO such number !!!!
Saleem
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