Equities gave up a big gain, yes, but it's also true that the headline DJIA is very deceptive after the conclusion of trading today.
There were a lot of stocks up....some of them up a lot. It wasn't a pancake of the bulls by any means.
Wish it had been -- or a complete rout of the bears -- because it would make things much easier.
That chart below shows a divergence of the 42 Day Rate Of Change (equivalent to around 2 months of trading) to the Nasdaq/SPX ratio, and although it's similar to what occured in 2008 at this time, I don't know if it is significant or not.
And I also don't know if being totally in cash is the right thing either.
The process of making money in these markets that trade in the midst of an economic backdrop so screwed up -- and where there are people who think Bernanke is being framed so he can be pushed out in favor of an administration political plant -- is not easy.
No wonder that Governor went off the ledge.....I may be next.
True, yet I start each day with the goal of not giving money back that I've earned, and not losing money.....period.
Not always successful, but very seldom taking the big hit.
If you saw the Paul Desmond interview on that cable station, you saw him reference a possible move to the March low and possibly lower.
Considering that he's been absolutely right for two years that's a little frightening, but for now equities are not quite knocked out, although staggering.
Take a look at Charts Of Interest and I'll see you before Thursday's open.
Stephen
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