Just The Facts

March 19, 2001
Gary Kaltbaum

The
Dow lost 821 points last week. The 7.71% drop was its biggest one-week
drop since October 1989.

The Nasdaq dropped over 161 points or nearly 7.9%. It is back to November 1998
numbers and is down over 63% from its all-time high. It has gone through my birth
year, my parents’ birth years and my grandparents’ birth years. Next up:
Lincoln, Washington and maybe even Columbus discovering America.

The S&P 500 fell over 82 points on the week. It is now down over 25% from
its highs. Selling has been so strong, it is now spreading to every other are of
the market. I started with statistics because they are reality. You can’t argue
or fight with them. The numbers are always right.

Anybody hoping the Dow would save the day were rudely disappointed. As I have
pointed out on numerous occasions, there was just no way the Cyclicals
were going to hold up and lead the market. This call was not about opinion but
about history. The Dow is now in worlds of trouble as it sliced through 10,300
support like a hot knife in butter. I never predict but a five-year chart shows
that odds favor 9200 is the next stop. I wouldn’t bet against it.

Insider selling after big drops...

I do not profess to know what
the motives of these sellers are. I just believe in logic. If these insiders
thought there was a turnaround at hand, not only wouldn’t there be any selling,
but I would think they would do some buying
after such big drops. Hmmmm! Just some food for thought.

Last but not least, maybe a bit of good news. I have not a clue about when the
carnage ends, but…many pundits that have been calling this a correction
all the way down, are now calling it a bear market.
I like this. Just about every analyst is now bearish and I am actually
seeing sell ratings coming out. Remember, this is all after
the drop. Didn’t see any of this at the top. Well, wishful thinking on my part.

Just The Facts

BUY THE FEAR, SELL THE GREED

Quick Links

Company Info

Contact

Company Resources