Morning Don, 7000 will be a psych support, the bear attitude will want to take it out during the day... if it is then 6850 is my next line in the sand... and I expect a rally that tries to keep it over 7000 on close... I expect it to hold above that and will be trading with that bias on the long side today.
My timing is still on schedule from last Thurs. for today being the entry day (lows) with general shakeout globally... this is a trading only statement and can change.
Which stocks to go long on... looking at AMAT, INTC, wondering about loan and credit card default rates on some banks_ so not all banks are safe bets, but CMB looks good. Actually many stocks look good as investments, lets find the most likely to rebound a lot! Please everyone chip in with your screaming best picks, not just the one's you may have been hurt on and want to recover with a little SI pr.
Last insight I can offer which hasn't been discussed at all is this: the steepness of this decline is due in part to the Swill announcing their gold sales beginning in 1999. Gold has traditionally served the same safe harbor role (though to a much smaller degree) as bonds. Bonds haven't appeared to be a deal, having been on a run themselves. Gold has been oversold for some time and becauseof that, some probably saw gold as a neutral hedge parking zone if markets fell.
Well, the Swiss (capping the Australian debacle) selling announcement leaves fewer alternate places to go with money... the only thing to do was buy bonds, some commodities, corporate debt, Euro's. The continued weakness of gold at a stock market top left one less place to hide or run if things got scary... leaving selling stocks, or playing derivatives, as the only course of action. Which is the situation we are in over the last 4 days.
Jim |
