- The market was down from the opening bell but by noon it was stuck at S&P 704–708. Rally attempts were made all day but especially at 2:40pm and 3:40pm. Many were waiting and watching for 700 to be broken; next stop 687 or another 200 Dow points.
- After the rally attempt at 3:40p the bulls gave up with twenty minutes to go and the bears rushed in for the kill. S&P 700 see-sawed back and forth, finally closing at 701.83.
- Final percentage losses: Dow -4.25% , S&P 500 -4.66% , Dow Transports -6.65%; Russell 2000 -5.41%. A bad day for 401k-ers with index funds, or any kind of fund. But the potential for a real slaughter was there. That we didn’t get a Black Monday is of interest.
- This was not a panic sale day. There are buyers out there at these prices. You could see that by watching the tape. It leads me to feel we could rally for a bit.
- We are a long way from the end of this recession and very poor business news is in front of us. But, at some point, perhaps like now, equity prices begin to reflect future concerns. Not all the stocks I’d like to own are at distress prices, yet. But some are.
- Getting trapped into a two week rally like we experienced in early December is something I hope to avoid. Am not about to buy-n-hold but one could make the argument we are very over sold. Lets see how this unfolds.
Tomorrow will be no less interesting so rest up, update your dream list of stocks and we will meet back here anon.
