Steve, 7000, 7400, 7935 - just numbers.
When selling covers nearly every traded stock it's clear that nobody took the time to draw a trendline before he called his broker.
Before I believe in a bounce, I'd like to hear a few good causes why some should buy. OK, some stocks are "cheap" - but why shouldn't they become cheaper during the next weeks? Russia, South-America, far-east, nothing will change next time. And I'm sure, Mr. Clinton didn't change his hobbies. Also in Germany: Even our huge Cancellor must wait another four weeks for his retirement - and it could last for long till a filing against SAP will be decided.
Another argument: All these deep sleeping profs have bad numbers for this year so far - this is a great opp even for half-intelligence-persons to make money: shorting till every stock burnes in the hell, and than sharing the probable/possible october-rally. It's so easy to beat down every careful try to rescue when you have such amounts of stocks invested. And, we shouln't forget that fund-customers drew money away now - some mm's must sell...
The strong bond-market shows that a lot of money walked from stocks in bonds - every reversal will cause bonds moving to higher rates - in this situation means selling of bonds loss-taking. What I mean is that a certain amount of former invested money lays in the freezer.
Like DJ predicted, we could see a "interim"-rescue (so far I remember a "Milchfrau-rally"). I this comes true, I'm considering to sell more.
25% - this number seems to be burned in some brains. However, we are selling now for 6 weeks, and that's usually enough. A weekend is a good time to cool down. Let's hope that the next week will bring rain and cool air not alone to Houston.
Jury |
