My Best Advice
I do believe
in contrary
indicators and I have been waiting for some specific things. The
good news is that the words “bear market” are starting to pervade the
media. CNBC actually had a segment entitled “Surviving
The Bear Market” on today’s programming. But just when I started to get a little
excited about the negativity, they bring on someone to say you need to be in 70%
stocks, 20% bonds and 10% cash. This person then went on to say that if you own
a good company, just hold it long term. How many times do these financial
geniuses go to the well before they recognize that right now, things are
different?
I will let this talk speak for itself. Speaking of things that speak for
themselves, I harken back to the charts. They continue to speak loud and clear. It is a very
ugly sight. I have not pulled any punches in recent reports and do not intend to
today.
The Nasdaq continue to trade below its recent support at 1930. Look how it
failed almost to the point when it tried to rally. Remember, support becomes
resistance after breakdowns.
The Nasdaq 100 is even deeper than the Nasdaq in its drop. I am simply amazed
where most of the big-cap TECHS are trading.
The S&P 500 is now yonked below the 1170 mark that I pointed out for you.
Lastly, the almighty Dow is now in deep trouble. The Dow could only rally up to
its descending 50-day moving average, which gives me pause. It will also a big
negative if the Dow closes now below 10,120…which was the July 11 low.
My best advice is to take this time and study all your mistakes, as well as all
of your successes. The markets do have 100 years of history behind them.
Eventually it will turn. Until it does, we must all deal with reality…not
opinion, not hope, not prayer. As Fred Sanford once said: “This is the big
one, Elizabeth.”Â