Seems to me we are in a bearish downtrend in the blue chips, something which has been evident in the smaller cap stocks for a while now. Once the longer term trends break their moving average I see no hope of serious upturns for a while. It takes fundamental new, good information to break the trend. We have none of that. We have the same old Russia, Asia, Latin America, and maybe even some new groaners. Rubin saying that the interest rate will be lowered is too little too late. That's like saying "Uhh-h-h, guys? I think it's time to see how many lifeboats are left. How many do we have on this here Titanic?". I say we're going down. CPQ chart showed a dead-cat bounce and now begins that long, treacherous, miserable, rotten slide into the blood, guts, and gore of oblivion. Witness other blue chips. Also witness that the banking sector is not presently leading us out of this mess ... they are actually leading us into it!!!
I have gone 100% cash and will spot for tight-stopped opportunistic nibbles on the long shot of an unlikely rally. Everyone is selling into the rallies right now. Why fight it? I think the really big hit comes in October, with just a normal massive one in September.
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