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Charts courtesy of stockcharts.com

Wednesday, October 8, 2008

Rate Cuts Don't Impress Market

Not being a short seller myself, I rarely if ever post bearish stock charts. However, it's getting to the point where I don't have to; you can use a dartboard to pick stocks to short now. Once again, all beut a handful of stocks I am watching are in the red, most substanially.

The SPX rallied briefly after a big gap down, but has drooped back, staying above the low of the open at 972. The NDX is actually positive, as is XLK, the technology sector ETF. Also showing some strength is XLB, materials, and $XAU, gold and silver index.
Weakest is energy, despite oil prices holding steady around 90.

There was a coordinated world wide rate cut, aa most central banks cut by a half percent, bringing the fed funds target down to 1.5%. A little late, but it looks like someone figured out that we were about to go down the deflationary drain. The question now is, is it too late? The market will tell us soon enough.

LNN reported earnings yesterday, and is down 4.7%.

Once again, there are no breakouts. Their are 29 new highs on the AMEX, almost all short and ultrashort ETFs. There are a staggering 1372 new lows on the NYSE, 807 on the Nasdaq.

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