An amazingly difficult day. Fifty, eighty, hundred point swings as everyone tried to find their way. The last half hour was brutal. No one wanted to go home long.
This is no market for investors. If you are investing, get out. Wait until things sort themselves out. That can only be realized with time.
If you must buy, watch for mini trends in sectors. Oil, for example. In the face of reduced industrial demand the world is awash in petrol. There are dozens of tankers on their way here with no where to store their cargo. Yet, oil is advancing based upon OPEC threats of restricted supply. You may be able to catch oil stocks for a swing trade.
We could still see a counter rally but it would be based on air. Certainly not on fundamentals.
The Motley Fool had some stocks they felt could rebound from extreme oversold conditions. Here are a few with their five year performance: Dow Chemical -83%, Manitowac -46%, Eastman Kodak -89%, CB Richard Ellis -50%, Infospace -86% and NY Times -92%. Look tempting, don’t they?
Asia is mixed, some up, most down. Too much uncertainty for a trend.
