Tony --- RE: Friday's Market analysis from WSJ:
I read that report, thinking of BD's 3-legged stool.
Saw LOTS of bad handwriting on the wall, plus some hope for the European leg (Western half of leg?)
You underscored WSJ's comment that the Nasdaq close at 1639.81 came within 1% of indicating a bear market for the Nasdaq.
That dense article had several other items that hit me.
-------------
... stocks ... steep losses Friday as anxiety about the troubled Russian and Asian economies prompted skittish investors to raise cash.
... DOW ...lowest since Jan 30th ... total loss this week 514.93 ... squarely in a "correction."
... Technology stocks posted the steepest losses
(What about biotechs? Are we below the horizon now???)
... The Nasdaq composite is now down 18.6% from its high of 2014.25 on July 20, just below the 20% level that indicates a bear market.
... Tech shares, particularly volatile Internet stocks, stumbled after a chorus of analysts Friday urged investors to stick with highly liquid large-capitalization shares
... Greg Nie, technical analyst at Everen Securities Inc. "The tentacles of this correction are reaching out even further and they're catching up now with stocks that have very little exposure overseas."
...European equities managed to recover from steep early declines Friday
... President Boris Yeltsin returned to Moscow Friday amid news reports that his acting prime minister, Viktor Chernomyrdin, had agreed to a reversal of free-market reforms as part of a political compromise to keep Mr. Yeltsin in office.
...BankAmerica and BankBoston ...the latest U.S. banks to report losses as a result ...Russia. BankAmerica, the nation's fifth-largest bank, said ...$220 million in Qto-date trading losses to market volatility in Russia...
... an ever-increasing list of troubling economic news buffeting the region's emerging markets.
... The only thing that's going to shake us out of this rut is some concrete signs of stability overseas," said Anthony Dwyer, market strategist at Ladenburg Thalmann & Co.
----------------
With news like this every day, where are such "concrete signs of stability" going to come from??
Then, to make matters worse, my kid sauntered in and told me, "We're headed into a world recession." OUT!! I'll have NONE of that!
---------------
Always before I've been all too willing to pick up a falling knife. The bear fear must be catching me - or why would I be afraid to pick up some Ligand at 6 3/4??
How low CAN it go??
Always before, I sensed only a 3-4 month "correction."
Lately the news seems so much more ominous, as if the world news is "coming out of denial," and seeing that it will take years (not months) for the emerging countries to straighten out their sagging, mismanaged, often-corrupt (and unwilling to change) economies.
IMO -- a STRONG bear sign.
Cheryl
|
