What a week it was.......

Last week Markets created history by slumping the most points back to back, never ever this happened before.

Internals of the markets were trashed to the most negative reading ever.

Any breakdown like this is never a good thing, market is telling us, that there is serious economic issues which needs to be resolved.

Last week was a "preview of 2008".....

We have to respect what market is telling us & trade accordingly.

This breakdown is extremely intense & sharp.

This breakdown is different from 1987, 2000 & 2008 & will play out differently.....

I do not believe that low of 1101.54 will hold.......will be tested....

We have rallied to 1178.81 & may be getting close to the top of this range.....1220-1240 may be resistance.....

It will take time to build technical strength, sometimes we are looking @ months of test & retest.

The best way to play this market is to recognize the "fragile technical health" & then be trigger happy.

Money is made in every situation IF you are quick on the trigger & WAIT for attractive buying level.

Gold has to be part of "safer bet"..Bullion is preferred BUT some gold stocks are making new highs while others are struggling.

Consumers sentiment came in @ lowest level since 1980.....this is a historic negative reading & one has to be careful with all its implications.....

Economic growth worldwide is under severe stress due to inflation as Central Banks are raising interest rates in China, India......

US will show modest GDP growth which may range from 1% to 2%...

Politicians in US will play their ongoing dirty game of no substance & all talk. This will affect markets negatively.

Many stocks have come off their lows, & hopefully you participated in this technical move, here is the list of some movers :

AAPL low $353.02 close $376.99 gain of 6.79%
BIDU low of $128.70 close $150.15 gain of 16.67%
AMZN low of $190.05 close $202.30 gain of 6.44%
NFLX low of $221.50 close of $244 gain of 10.16%
PCLN low of $480.84 close of $503.11 gain of 4.63%
CAT low of $80.84 close of $89.81 gain of 11.09%
LVS low of $36.08 close of $43.59 gain of 20.81%
APKT low of $45.10 close of $55.58 gain of 23.24%
PLCM low of $22 close of $25.61 gain of 16.36%
FFIV low of $70.99 close of $81.90 gain of 15.37%
RVBD low of 22.40 close of $24.57 gain of 9.69%
CNQ low of $33.14 close of $36.67 gain of 10.65%
AUY low of $12.69 close of $14.83 gain of 16.86%
LULU low of $47.16 close of $58.15 gain of 23.30%

So..the purpose of above table is to highlight the lows in this slump & how quickly stocks have moved UP.You will also notice that some stocks did way better than others......

This is an extremely tough market & it is NOT going to change anytime soon.

Ensure your OWN comfort level, it is NOT business as usual.

Exposure needs to be adjusted very quickly.

Good luck in your OWN understanding of this market TAPE.

Unless US & Europe get its debt under control....then only we are off to the races.....till then UP, DOWN moves

BLOG does NOT give buy or sell.

Saleem