SB:
Don't waste your time on CNBC. I've sent them enough hard data to fill a wheelbarrow, but if it is bearish, it just gets dropped into the "g" file.
Well what will tomorrow bring?
It SHOULD provide the start to a serious sell-off, given the intensity of the negative news (surprised even this "forever bear"). But will it? I agree with the idea that at some point, the implications of the falling earnings expectations will strip the market of buyers, but it won't happen overnight. The main point for this observer is that the dippers have not yet been burned, and it will probably require a few dead bodies lying in the gutter for the message to get through.
There is one caveat....a drop of 15 to 20% could really get things moving as the margin calls kick in. I look for a market drop of 5 to 10% during the next few weeks, (over the pre-announcement period), then a dip-buyer-driven bounce. If the dippers are a bit slow to enter, margins could become the driving force. Should be interesting. One thing is for certain, and that is that there will be precious little positive news over the next several months, which ought to grind the markets irrespective of the activities of the next few days.
The current lofty market pinnacles have no financial foundations.
Erosion is inevitable
Best, Earlie |
