Alert: Futures starting to look a little ugly
77 8.30 7.75 all down for Dow, S&P, and Nasdaq respectively
What to take away from today's Dow action:
When the market moves to the upside, it seems real tepid and weak,” says Bill Greiner, chief investment officer at UMB Asset Management in Kansas City, Mo. “The action is still dominated by the sell-side of the equation, and so sellers basically back away for a period of time, and buyers try to stage a rally and it’s on relatively light volume.”
Last time when we had the almost 1000 point rally I said we will give it back in about 4 days.. I was off by a few days.
I venture to say that today's rally will be given back in a day or two.
I mean look at what is going to happen with GDP
2.bp.blogspot.com
On average, the 54 economists surveyed expect gross domestic product to decline at an annualized rate of 3% in this year's fourth quarter. That comes on the heels of the Commerce Department's report of a 0.3% drop in the third quarter. Another negative reading is forecast for the first three months of next year, with an essentially flat reading for the second quarter. Slow growth is seen for the second half of 2009, reaching 2.1% by the fourth quarter.
"By the third quarter of next year, a recovery will be under way," said John Lonski of Moody's Investors Service, but he added that expansion won't return to pre-crisis levels until 2010.
Several economists in the Journal survey gave a much more pessimistic forecast, in part as a result of pressure on consumers.
"We're not only in an economic downturn, but a serious banking crisis. The idea that you can just have a couple of quarters of negative growth and
Bummer I posted about GE today and did not have the conviction to hold the 25,000 day trading shares until the close...left $25,000 on the table.
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