Looks like skinneej has worked his magic on the markets. down 4.5% in the last 3 days and tomorrow does not look good at all. trouble with CSCO…MSFT and INTC also selling off after hours. did you see the drop in CME? down 17.5% or $103…and down another $5 or so after hours(all the exchanges are now under the microscope).
seems that we will at least re-test the recent lows…then from there who knows. I am beginning to think the US consumer has lost confidence and we are in for more weakness. there I said it, now I know it won’t come true!
edit to add: watch the retail numbers tomorrow morning.
Why would it hold? The feds had the biggest rate cut in history 1.25% in 8 days and the market still doesn’t even acknowledge it. The only way that the “stimulus package” will stimulate the economy is if it’s all spent on french ticklers. I ask again, what is there to support the economy? Please don’t say “chart”. Earnings will fall, P/E’s will rise, stocks will fall… We have several more big selloffs to follow. Centex will fold, a major bank will fold, and there will be more panic to come. Here is what needs to happen to get out of this bear market:
There has to be a guiding light for the bond insurers. As long as they are shakey, banks may go bankrupt. If they get a bailout, you will see some strengthening in the financial sector.
Banks will need TIME to build up their reserves before they can start lending again. That is why rate cuts won’t work. They don’t have any money to lend!!! They still have 100’s of billions that they haven’t even written off yet.
Housing inventory has to start to move.
Home prices have to start to stabilize.
The corporate bond default rate must stay low. If this rises we are in deep ****.
That is just the beginning, but it’s the fundamentals here. We won’t see another strong bull market for at least 12 months. Unfortunately, it could be 2-3 years.
The market dropped 4.5%. I only lost 0.1%. I think I will stay in PIMCO’s hands for a little longer.
Also, I saw tonight a big flip flop on Kudlow. He is definitely a perma-bull. He has been arguing for months for more rate cuts, more rate cuts… Tonight, he says it’s a stupid idea to cut rates!!! WHAT? Also, he called someone else a flip-flopper tonight. This guy is an idiot…
PS If you are in the market, make sure that your companies have a clean balance sheet! A company with a high debt ratio in this environment is a sitting duck!!!
ok, I’ll be your huckleberry…DOW 14,000 by June of this year. Possibly even 14,500. Global growth will surely lead the way. Think about stocks like BUD, MO, AGN and MT…the Chinese will need beer (BUD), cigs (MO), botox (AGN) and steel (MT) to host the Olympics!
ok, I’ll be your huckleberry…DOW 14,000 by June of this year. Possibly even 14,500. Global growth will surely lead the way. Think about stocks like BUD, MO, AGN and MT…the Chinese will need beer (BUD), cigs (MO), botox (AGN) and steel (MT) to host the Olympics!
