Stay Strong
It usually is
very easy for me to conjure up a thought from one of my favorite
comedies — “Animal House,” “Caddyshack,” “Airplane,”
“Seinfeld, “The Honeymooners” — I guess I am showing how
psychotic I am. I just like a good laugh. But right now, I can’t conjure one up
— what’s happening in the market is serious business.
I really don’t have much to add from
my past few reports except to say there are a couple of bright spots you can
possibly look to.
Put/calls have spiked indicating a big pick-up in pessimism. This does not
insure a rally as oversold can become more oversold.
The other positive is the “throw-in-the-towel” mentality I am hearing
from my radio listeners. I get a real good feel that way…and I am hearing a
lot of : “I-am-done-with-the-market” type talk.
Unfortunately, those are the only positives and only on the sentiment side. Once
again, we go to the pictures and they are only getting worse.
The Dow, S&P 500, Nasdaq and Nasdaq 100 are all now way below their recent
breakdowns which generally only lends itself to bounces…sellable bounces…and
the last couple of holdouts are now toast. The Russell 2000 has completely broke…so
that’s the apparent end of the party for the small caps…
…and the SOX is now UNnicely
below its support which was the 530 level.
When I first started really learning about the markets, I think I spent more
time studying
bear markets than anything else. But no studying can prepare for what has
happened, particularly in the Nasdaq. I remember hearing a long time ago
someone quoting the philosopher Nietzsche: “What doesn’t kill me, makes me
stronger.” I urge you to stay strong during these times. Average people
won’t. Don’t be average.
Me, I’m going home to watch “Seinfeld.”