Roger, I too don't profess to know where the bottom is, but my best guess is we have further to go. Some interesting statistics from today's frenzied market activity.
NASDAQ UP Volume was 13,000,000 shares.
NASDAQ DOWN Volume was 906,200,000 shares.
NYSE UP Volume was 38,900,000 shares.
NYSE DOWN Volume was 875,600,000 shares.
All the major averages closed at their lows for the day, portending additional market malevolence in the days ahead.
30-year long bond now hovering near the 5.2% area.
As the market fall picked up pace late in the day, additional margin calls most likely went out, and the effects of those calls probably have not been fully felt by the market as yet.
Mutual fund redemptions are increasing, requiring funds to sell off some of their more favorite holdings in order to meet increased redemption demand.
Some yearling money managers, in an attempt to preserve what's left of their 1998 trading profits are going to be quicker on the trigger having read of George Soros' estimated $2.0 billion loss on Russian investments.
Tech, brokerage and retailing sectors were absolutely clobbered today, and the U.S. consumer has been said to have pulled in his/her shopping horns during August.
Dow September futures traded down 608 points before closing at 4:15 EDT.
Let caution from both sides be the watchword.
MT
|
