This IS the-most difficult market for those born after depression.....
It seems that their is NO end in sight for this SHARP/SWIFT downward leaning market......
Every technical indicator HAS failed near any minor resistance point?
Everytime technical outfit like IBD inserts "markets in confirmed rally"...immediately we get an instant correction in markets?
Which means whenever we buy when technicals are showing improvement a new selling wave comes from nowhere......reasons are always a REHASH of what is ailing this economy for almost 8 months...
On June 5th 2008 Nasdaq was @ 2549.94 highest point in last 52 weeks.....today we are @ 1377.84 a drop of 1172.10 points or Down 45.97%...we are only 61.72 points from intraday low of 1316.12 on Nov 20th, 2008.....
Based on the weakness in the markets...there has been some buying near lows which is the reason that new lows are staying around 300 in NYSE & Nasdaq.....
The only LOGICAL approach MAY work is to buy beaten down or corrected stocks which are working...like Gold & Techs......
Small exposure MAY not be a bad idea as we test NEW LOWS in all indices......
Politics & slumping economic Numbers are the real culprit for this RENEWED downtrend......
There IS imminent hope that we are hitting the low point in economic picture as articulated by Ben Bernanke,Jean Claude Trichet as they are predicting recovery in 2010.
China on Friday is still insisting that 8% GDP growth is still on track for 09..in Q4 China hit a low point of 6.8% GDP....
Canada Central bank Governor is even more optimistic that growth will return in 2nd half of 09??....IF US stimulus takes its effect.
Most investors/traders are hurting which includes Warren Buffett..who is also hopeful for 2010.
Those who have 2 years horizon will do well if they buy near lows & WAIT for economy to TURN...
Tech stocks so far are showing sign of life..as they are NOT hitting new lows with indices....so it MAY be the SAFEST place to assign some capital......
This week will be a real test of markets support.....HOPEFULLY it will find support NEAR these levels....as markets are overdue to look beyond current numbers....markets are trying to digest how bad we will get before we get better.
BLOG does NOT give buy or sell.
Saleem
6 comments:
SALEEM
I found this interesting article: THoughtsOncothyreon, Inc., a biotechnology company, together with its subsidiaries, focuses on the development and commercialization of therapeutic products for the treatment of cancer. The company’s lead product candidate includes Stimuvax, a cancer vaccine in Phase III development for non-small cell lung cancer (NSCLC). Its pipeline of clinical and pre-clinical stage proprietary small molecule product candidates comprises PX-12, PX-478, and PX-866. PX-12 is in Phase II development for pancreatic cancer. PX-478, a Phase 1 trial product, is a small molecule inhibitor of hypoxia inducible factor-1a (HIF-1a) for advanced metastatic cancer. PX-866 is an inhibitor of the phosphatidylinositol-3-kinase /PTEN/Akt pathway indicated for advanced solid tumors and glioma. In addition, Oncothyreon offers BGLP40 Liposome Vaccine, a preclinical stage liposomal glycolipopeptide cancer vaccine for use in various cancer indications, including breast, thyroid, colon, stomach, pancreas, and prostate, as well as various types of lung cancer. The company has strategic collaboration with Merck KGaA, under which Merck KGaA has assumed worldwide responsibility for the clinical development and marketing of Stimuvax. Oncothyreon, Inc. was founded in 1985 and is headquartered in Bellevue, Washington.
Hi Madmax,
Thanks for the info on your biotech research.
Saleem
Hi Madmax,
Thanks for the note on GE. GE is a massive corporation with it's hands in ever piece of pie out there. Yet it made it's numbers last year. Was highly profitable and paid dividends. The cut in dividends was due to the current CEO who thinks dividends should be competitive, not paid as a profit to the shareholders who actually own the company!!!!! So I think the dividends will rise again, as soon as the economy turns the corner. If you stay out ahead of the strike price you can pocket some nice change every month and if the stock is called, you make a profit anyway. IMHO.
Best Regards
Hi All,
Futures look weak at 10 pm Sunday
S & P -10.00
Hi Saleem,
Oh I forgot to mention that it snowed several inches in Atlanta today.
When hell freezes over right?
What next?
Have a good one!
Hi Standards,
Snow in ATL...hope the city handled it well.
Yes..futures are weak....close is more important....
Saleem
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