Asian~Europe~US Financials are nothing. There will be Blood! Only one market will prevail in the End. Can you guess which?
Market capitulation?....or market meltdown? Could go either way....there could be a chance that this is a bottom. Historically, this week has been negative for 9 of the last 10 years. So, I say we continue lower this week, then expect a pop. I am 50/50 short/long. In any event, the VIX is going to pop this week. One sunny sign, gold is starting to go back up in London....usually in a sell off everything goes down. We may have hit bottom.
whats astounding to me is that the DOW already dropped over 2k points in just 2 1/2 months from its high. it took the dow over 2 years to do that in 2000. real estate bubbles cause more severe economic woes than a stock market bubble,thats or sure. real estate has a much more profound ripple effect.
Real estate does have a much more profound ripple effect, not only that but credit card delinquencies are rising and this will be the next major problem for this economy.
This is a political event crisis. Election years are usually stable with at least a little uptrend. The market has little confidence in the current leadership, nor the current set of candidates nor the incredible shrinking little bearded guy. And the lack of confidence goes well beyond our shores, Gordon Brown looks very clueless for one example. I have been in the market for twenty years and I have seen things in 2008 that I have never seen before. AT and T dropped over 4 dollars intraday in less than half an hour on some pretty tame comments by its CEO. That probably signals that the NYSE is now truly an electronic market and specialists have no power to stabilize a stock from comments taken out of context. That said great technical damage was done to the stock and the telecoms. There is now great opportunity for daytraders, if you shorten up your time frame even more. The trading that I have done lately I would call drive by. Of course if you got short at the end of the last year and stayed short, that has worked very well also.
Wow - the world decided to hold a capitulation party but forgot to invite the US cash markets. Oh well, I guess the US will have to hold their own party ... ... :eek: R
wow down a big 3%. most asian markets were up 50% to a couple hundred % over the past few years. China was up even more. Im supposed to get scared because of a 3% drop?