*****TA UPDATE(intraday)*****
Panic is finally setting in to Wall Street, as the technical bounce yesterday failed miserably, and portended more weakness in this pervasive downtrending channel, which has lower prices in mind.
The Nasdaq is leading the way down, as earnings expectations are dropping with earnings/revenues projecting to be lower than forecasted just a few weeks ago. Earnings warnings are just around the corner, which could provide more of a damper on tech stocks. The selling climax is not here yet, but may be imminent.
The markets should have countertrend rallies, but unless the breadth and TRIN improve greatly and hold those gains, the markets will struggle and likely close weak. There is virtually no support levels for the Nasdaq as we are making new lows daily.
I believe that December will provide a great buying opportunity in growth stocks, especially beaten-down tech stocks which have lost 80-99% of their values. I will only be going with quality, of course, and will be sharing some Tier 1 and Tier 2-2 stocks, the latter will be recovery candidates for the longer term. This terrible bear market sets up the possibility of a new bull market for 3-4 years.
Dr. Bob's commentaries should not be construed as recommendations to buy or sell stocks. Always do your own research before investing. |
