Dow drops another 297 points

[AngelsSix]

Anyone ready to buy stock yet??

[Defender968]

I was considering selling all my stock and buying acreage in the mountains for when it all burns down...

[nmap]

We're at a critical support level. If it holds, we've formed a double bottom, and we have a chance for a nice rally.

If it breaks, then Dow Theory indicates continuation of a bear market - and Dow 5500 or less is possible.

We may drift upwards a few days, but any hard drop from current levels is likely to have nasty consequences.

That mountain acreage might be a nice place to stay for awhile...especially since rumor control hints at up to 3 million more job losses next quarter...LINK

Pleasant dreams....

[PSM]

Originally Posted by AngelsSix

Anyone ready to buy stock yet??

I've been buying all along. It's a fire sale. This is when wealth is made.

But that's just me.

Pat

[6.8SPC_DUMP]

Originally Posted by AngelsSix

Anyone ready to buy stock yet??

The only stock picks that have my interest are emerging technologies and companies whose price is worth next to nothing on bankruptcy fears that probably won't materialize.

I've had my clients on a portfolio aimed at growth during a depression since late in Sept.

I haven't found any emerging tech I like.

There were companies in the American auto and financial industries that I felt were oversold. Did well with Ford and missed out on the financials. Last friday I was torn over SIRI because Mel Karmazin said that the reports they could be filing for bankruptcy today was false. I passed and it was up 100% at one point this morning...

I'm in precious metals, agricultural commodities, treasuries and foreign currency now.

[nmap]

6.8SPC_DUMP, personally, I would wait to see how the current fight between bulls and bears turns out...however...what do you think of the biotech ETF, symbol PBE?

Technicals look so-so, but weakening, with MACD and RSI going the wrong direction, but the MA's still OK, IMO.

Chart Link

[6.8SPC_DUMP]

Originally Posted by nmap

6.8SPC_DUMP, personally, I would wait to see how the current fight between bulls and bears turns out...however...what do you think of the biotech ETF, symbol PBE?

Technicals look so-so, but weakening, with MACD and RSI going the wrong direction, but the MA's still OK, IMO.

Chart Link

I don't like ETF's. They are great for a DIY portfolio if the sector is strong and the market is solid. I think there will be tremendous opportunities in the future from this industry, but they won't be realized from an ETF. This one has vastly under performed QQQ/Spiders recently. No easy way to pick the winners. I just try to stay on top of what is being developed, sort out the 20 different expert opinions and see what makes sense i.e. has a future market segment and buy after it is developed but before it is introduced to the market.

I'm also worried about the valuation of the dollar. If the dollar falls 20% in relation to another currency but your stock is up 20% you are flush either way. I try to keep things as simple and safe as possible now.

[Sigaba]

While I watch the conversation between nmap and 6.8SPC go over my head, I am wondering if anyone else has noticed the recent trend the last couple of weeks in which a member of the current administration makes public comments and then the Dow starts to drop? Yes, correlation is not causation but maybe the president could work some of his mojo on the skeptics rather than just preaching to his base.

[Gypsy]

Originally Posted by Sigaba

, I am wondering if anyone else has noticed the recent trend the last couple of weeks in which a member of the current administration makes public comments and then the Dow starts to drop?

I had a similar thought, the Dow dropped after the President's announcement on his new housing plan.

[Surf n Turf]

Originally Posted by Sigaba

While I watch the conversation between nmap and 6.8SPC go over my head, I am wondering if anyone else has noticed the recent trend the last couple of weeks in which a member of the current administration makes public comments and then the Dow starts to drop? Yes, correlation is not causation but maybe the president could work some of his mojo on the skeptics rather than just preaching to his base.

Originally Posted by Gypsy

I had a similar thought, the Dow dropped after the President's announcement on his new housing plan.

Gypsy / Sigaba,
I am just guessing, but wonder if the “content” of the “public comments” is the cause of a down DOW.
My understanding of the market is that “perception is reality”, and (to use the new housing plan as an example) it was perceived to be a TERRIBLE (technical term) drag on the economy, ill-conceived, and with the drop yesterday, got a vote of no confidence.
As nmap has speculated elsewhere, we could be headed much lower if the investor class continues to sell out of the market.
SnT

[Gypsy]

Originally Posted by Surf n Turf

Gypsy / Sigaba,
I am just guessing, but wonder if the “content” of the “public comments” is the cause of a down DOW.
SnT

Yes...better clarification of my comment, SnT. One can only hope it holds steady.

[nmap]

The Dow has broken support - according to Dow theory, we go down from here. In my personal opinion, it will be substantial, in both magnitude and duration.

Conserve cash...

I've attached a PDF of the latest Dow Theory newsletter. Those who are interested might find it to be interesting.

[Defender968]

Here we go, hold on to your hats, and your wallets.

http://www.foxbusiness.com/story/mar...futures-lower/

Blizzard of Bad News Sends Dow Below 7K

Matt Egan
FOXBusiness
Monday, March 02, 2009

The only thing falling harder on Wall Street than snow Monday morning were the battered markets as the Dow sank below the 7000 level for the first time since 1997 in response to new bleak economic data and the government's latest rescue of AIG.

Today’s Markets

As of 10:23 a.m. EDT, the Dow Jones Industrial Average fell 155.71 points, or 2.21%, to 6908.25, the S&P 500 lost 16.97 points, or 2.31%, to 718.12 and the Nasdaq Composite sank 22.69 points, or 1.65%, to 1355.15. The consumer-friendly FOX 50 dropped 11.30 points, or 2.04%, to 541.54.

While the $30 billion in new aid for AIG (AIG: 0.4843, 0.0544, 12.65%) was at the forefront Monday morning, the markets were also slammed by a gloomy manufacturing report, new data showing the U.S. savings rate hit 14-year highs in January and HSBC’s (HBC: 27.88, -6.94, -19.93%) plans to raise $18 billion.

The combination of gloomy headlines and negative market sentiment sent the Dow below the psychologically-important 7000 mark for the first time since Oct. 1997. The losses come after the Dow ended at its lowest level since May 1997 on Friday, capping off its worst February since 1933. Slammed by the global recession and the worst credit crisis since the Great Depression, the benchmark index is mired in its longest monthly losing streak since September 2002.

“I think we’re going to see some type of dead-cat bounce this week, “NYSE trader Jason Weisberg of Seaport Securities told FOX Business, predicting a “pretty substantial pop.” However, with January’s jobs report due on Friday, he said the gains will likely be fleeting.

Nearly all 30 components of the Dow were in the red Monday morning, led by financial companies Citigroup (C: 1.449, 0.039, 2.77%), Bank of America (BAC: 3.3827, -0.5973, -15.01%) and General Electric (GE: 7.7899, -0.7501, -8.78%). Industrial companies like Caterpillar (CAT: 22.93, -1.68, -6.83%) and General Motors (GM: 2.102, -0.178, -7.81%) also fell sharply. On the other hand, Intel (INTC: 12.7601, 0.0201, 0.16%) and Merck (MRK: 24.14, -0.06, -0.25%) were
flirting with positive territory.

[Pete]

The DOW is down today?

President Bush must have gone out to eat after church down there in Texas.

[BMT (RIP)]

6,000 anyone??

BMT