- - - - MARKET ALERT - - - -
The Dow is showing incredible weakness, despite the run ups of the "cyclicals" etc. Nasdaq is in the toilet. If the Dow closes down after today's gains then where is the money going? Cash? Asia? Other? It has got to go somewhere.
Today will be the biggest volume trading day in history.
This thread needs discussion of the facts and effects of this past few trading day's dynamics. Manipulation is one thing. But I am seeing suicidal tendencies in the market. When you cut out the internets, you cut out your HOPE. When you cut out your high-flyer high-techs [MSFT, LU, INTC, CSCO], you cut your main arteries. Now you can still survive if money goes to cyclicals, drugs and Russell 2000. But when it leaves there, too. . . then the very life blood of the market is being removed.
I predicted several months ago that starting around tax day we would be starting a small bear market through the summer. I did not think the indicators would be so strong, however. These recent indicators are more indicitive of a full blown bear market. Let us all [bulls and bears alike] hope that doesn't occur. NOBODY makes money in a true bear market. And I like the current economy as it is, thank you.
I went cash in the biggest way ever. . .last week when internets were at their highs. Since then, I have made a few buys, but have gone cash more than re-invested. My intent is to continue going the same way. I am likewise looking at some bear opportunities. An easy one [though fairly long term] is the Prudent Bear mutual fund BEARX. Another is to short some of the indexes, such as QQQ.
Whatever the correct strategy turns out to be, the alert is that something big is underway. . . and when I try to follow the money, I keep finding myself in cash.
Best wishes to all.
Rande Is |
