Overheard On The Street
Here’s what they’re saying at mid-day:
Paul Desmond, President, Lowrey’s
Research: “I think the most significant thing going on here is that we saw
a 90% downside day on Monday. We identify a 90% downside day as any trading day
in which 90% of the total of upside plus downside volume occurs on the downside,
and 90% or more of the total points gained/points lost also occurred on the
downside. In other words, the price movements were 90% on the downside, and the
volume was also 90% on the downside. That’s an indication that investors are
showing some signs of panic.
“Up to this point we have had a relatively orderly decline. When you
start to see 90% downside days, it has two helpful indications to it. One, it
tells you that you are starting to move into a serious market decline. Now we
are starting to see it come in. Typically we tell our clients that you want to
get on the sidelines and stay on the sidelines and don’t try to outguess the
market until you see the last 90% downside day followed by a 90% upside
day.”
Alan Ackerman, Market Strategist,
Fahnstock & Co.: “The market is trying to work its way through
psychological as well as fundamental problems. There’s been plenty of real
damage done by the sharp market selloff, and we’re seeing a significant slowdown
in consumer spending. So under the current market circumstances there are plenty
of sell and hold recommendations, but there are few buy recommendations.
“Buyers remain lethargic and laid back while so many portfolio managers
are playing with pain. The next market move is really contingent upon how
aggressive the Fed will be when it meets March 20. It seems to me that the Fed
needs to do something dramatic to restore confidence. We have a corrosion of
confidence and not a crisis of confidence. Clearly, the Fed to so many now
appears to be behind the curve.”