I am at a loss for reason and logic! 8 consecutive days the Nasdaq has lost! The hemorrhage must stop! Mutual funds are getting hit hard!! I ask myself, who is doing the selling, what foreign country is selling, today at 3:00 P.M. exactly, the Dow, Nasdaq & the S&P went straight down. You can look at the chart and see all three went down in precisely the same pattern.
CFC or Countrywide opended @ $7.80 and about 3:00 on Marketwatch the rumor got started that CFC would file bankruptcy, about 4:00 P.M. CFC was selling at around $5.40 a share, lost about 31 percent and the trend line looked Bad. I am praying I hold out!!
At times like this I like to listen to Larry Kudlow. His show has a calming effect on me on days like this. He said there is a lot of trepidation about the upcoming earnings reports for the financials which make about 1/3 of the S&P. Plus an analyst just downgraded Intel which hurt high tec and of course there is still the housing fallout. Overall Larry Kudlow is still optimistic..
I think the market is over sold. A stock broker friend told me along time ago “the market is a madman”. Invest for the long run.
Good luck in ‘08
This was not an atypical pattern today, it will often quickly change directions at certain time intervals, like 12 and 2:00. I would guess program trading is the likely culprit. If I were a foriegn investor, I'd be loading up, because with the currency devalued, they get a 30% discount already.
If you don't have to sell, don't. Just pick some stocks that you would like to buy, and watch them carefully. At some time this year, they may be cheap enough for you to buy. Otherwise, just be patient.
SOMEBODY DO SOMETHING!! QUICK!!
Wait! On second thought... aren't corrections and bear markets part of the normal stock market cycle?