Doc,
NAZ barely held 2260....NAZ futures show a possible climax tomorrow. BRCD did earnings, and is way down afterhours. EMC got clocked today.
The bad news here is that psychology is driving this. My read is that we could be entering a period of stagnation with possible inflation IF the price of petro is kept high by OPEC cutting production to keep the price up.
That would be hell on wheels....for a while. I think we will slip under 2000 on the NAZ since there are NO good catalysts to return buyers to the market.
I don't think interest rate cuts are going to do it right now, especially since the FED (based on the CPI and PPI data) still thinks the propensity is towards preventing recession, but now has a keen eye to inflation, and may not be so giving with as many, or as large a cuts as we've seen to date. Let's really hope that the next CPI/PPI reports come back into line with norms.
As well, a intrameeting cut would help, but only provide limited psychological support, for a short duration. Earning's warnings are abysmal, and too frequent.
However, a technical bounce is in the cards, but not a LT buy bounce. Play that, if you can.
Steve |
