Posted on 05/27/2009 9:11:50 PM PDT by FromLori
As we've been noting, there have been a lot of very unhappy bears out there lately, who have been forced to suffere through this trashy, low-volume, short-covering sucker's rally. No amount of questioning the green shoots has done them any good, as bulls have trampled over them everytime they dare make a stand.
Yesterday was particularly painful, since the day's gains broke what was starting to be a slide last week. But today's pain -- and in particular soaring interest rates -- gives them reason for hope.
If Treasury yields keep moving up, the Fed will have been rendered neutered (or worse) and any hopes of a rebound in housing (let alone credit expansion) will be dashed
Final tally: The Dow ended down 171 points (2.05%), the S&P 500 lost 17.27 (1.90%) and the NASDAQ fell 19.35 (1.11%)
lol thanks still haven’t figured out how to do that.
ping
DOW 3500
I’m not in equities anymore aside from a less than 6 figure ed fund which is off 40% from highs so I really have no dog in this hunt
But the DOW will not go down to 3500.....not gonna happen baring a nuclear winter sort of fiasco..
By: Stock Market Sage May 27, 2009
Home prices' almost 20% plunge accelerated during the first three months of 2009, according to a report issued Tuesday.
The S&P Case-Shiller National Home Price index, a bellwether of real-estate market direction, plunged a record 19.1% during the quarter compared with the first three months of 2008. That followed an 18.2% drop last quarter.
The Case-Shiller 20-city index dropped 18.7% year-over-year, also a record. It fell 18.5% during the last three months of 2008. This index has plummeted 32.2% from its July 2006 peak and has fallen 32 straight months.
[snip]
Afraid you’re right... The end is near if not already happening in the stock market... Time to buy gold and sell stocks... Oh well, the market will eventually settle out - not soon... With the government intervention, it will take some time before anyone believes what is actually happening in the stock market. Do NOT believe the market analysis’s today - they are pushing for themselves and the market....
That photo above made me think of you.
It will definitely be hitting the 4,000 level. The U.S. GDP still has a long ways to drop.
The Chi-coms are freaking about the Fed buying and monitizing our debt. That's propping up Treasuries for now, but is worse then simply printing money. I'm suprised the market is hanging in there so well. Not sure why - traders are supposed to be smarter. Program trading maybe?
Traders are like circle jerkers. They feed off one another’s orgasms and then the thrill is over. Today’s traders remind me of the herd that follows popular culture -all sitting in front of the teevee together to watch pitifully boring shows like desperate housewives because that is what “everyone†is talking about at the water cooler. When a trader’s mom asked him ‘just because johnny jumps off a cliff does that mean you should jump too?†The trader replied - “Sure mom. I want to get to the bottom first!â€
well, the good thing about these sort of projections is that we will get to see who’s right won’t we?
you can crow if it collapses to the level some here think it will
i have no silver ball and eschew money managers...I tthere was a double bottom at 7500 which did not hold and then we went further down to 6500. I don’t see what reasoning can project 3500....
Right now there is an amazing amount of cash holed up the world over earning squat....I have a very large insurance payoff account that has done only 4% since April of 2008 but compared to equities who’s complaining?
but...sooner or later..
I’m more worried about inflation down the road with govt spending than I am market doomsday
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