A Really Bad Day on the Street
Feb 18, 2009
Posted by Jody Eisenman | Filed under Uncategorized
Unfortunately, the market started weak and closed down almost 300 points. The S and P 500 (which we discussed yesterday), closed at 789, below its’ technical support level. Many well known companies got hammered. Led by Alcoa and American Express, over 600 companies on NYSE, AMEX and NASDAQ closed at new 52 week lows. There were very few places to hide.
In other news, GM and Chrysler are seeking over $20 billion additional in return for job cuts that could exceed 50,000 workers. The state of California is in a deep deficit crisis. There appears to be another potential Madoff type fraud, as the Texas based Stanford group is accused by the SEC. Stanford has over $40 billion under management, and they have allegedly sold very high interest certificates of deposit that seemed too good to be true. There is an old Chinese saying (some think it’s actually a curse), “May you live in interesting times”. That certainly seems to be the case today.
February 19th, 2009 at 4:05 am
Jody, the news are certainly disturbing to the point that resurgence of the pressure selling in the stock market has gotten us dancing around the November low of 2008. However, the market may poise a huge bear market rally once it discovers that the November low of 2008 is a very solid support to hold. I don’t think that this time is going to be any different than the October and November bear market rally, opportunities are definitely there to grasp. Well, you are my mentor to my success, what do you think?