The dollar will likely have some legs as the global economy slows. A stronger dollar will put pressure on the commodity plays. Most have come down hard of late. MOS was down 41% today. Since June it has fallen from 163 to 39. OUCH!!
The markets have become un-correlated. Typically if oil was up, traders became concern about inflation and markets were weak, especially the Transports. Today oil dropped below 94 and DOW transports collapsed. Dropping oil prices are now reflecting fear of the global economy slowing. Everything is being sold except the Dollar which has been extremely strong due to fear of global recession. Even gold was down 35 dollars today.The rescue plan is set to go back to the House of Representatives tomorrow, and the fate of the markets rest on their vote. Agree with the plan or not, the markets are looking for a rescue of some sorts.
It’s a stare down like in the ole wild west. Who’s going to blink first and make a draw for the gun?Mr. Buffet rides into town again making preferred share deal and bagging up 10% dividends, with warrants to boot. The Oracle of Omaha just made a deal with GE similar to GS. I guess in believes that there’s GOLD in them G’s.
As Alex mentioned this weekend and also in an earlier post, it never pays to panic. The market recovered almost 500 points of yesterdays historic decline. Does today’s action we go straight up from here. V bottoms are very rare and most likely we need to test these lows and back and fill to form a good foundation to before we can think of bottom.
Sentimentrader.com posted some data when the DOW plunges 7% or more to a new 52-week low in a day and what is the typical outcome. This has occured 9 times since 1899.The average gain over the month is 5.5%
We just arrived back from Canada after attending the Spike Reunion. As we drove back to New York the market was taking a dive making a historical drop over 770 DOW points. This came after the bailout plan failed to pass a congress vote.This market is at the mercy of every news related incident. We are seeing NH_NL levels not seen since the crash of 87. NL surged over 2000 today sending the daily NH_NL below -2000.
Welcome to the new SpikeTrade website. We are excited to roll out the first phase of what we hope to be a great journey together. Look for many new enhancements in the near future.If you encounter any issues with the website please email us so we can send to our web developers to correct.We will produce some introductory videos soon to help navigate the site and make suggestions on how to make full use of SpikeTrade.com.We are in Canada this weekend at the 2008 Spikers Reunion having an intellectual feast along with much pain and suffering. There have been many great presentations and lots of interacting between very serious traders. So may ideas to implement to grow and become a better trader.Stay tune to the website for exciting new additions!
This week we conclude our third quarter competition and it was a wild ride indeed! The most exciting news is this will conclude how Spike info is delivered and introduce our new website interface!Starting this week each spiker and spectator that submits a pick will use the website interface beginning Friday evening after 5:00pm NY time. The original deadline continues to be Sunday’s at 3:00 pm NY time. I will be sending out in a separate email the new website link and instructions to the site. Please keep us posted with any comment and suggestions.