We are watching Europe closely. Numbers coming out are not very good…and that is being nice. Recession probability going up. The problem is they have no ammo as they still have negative rates and have not stopped the printing presses yet.

We may have hit a wall in here. We saw some momentum indicators stall in the last day. This does not have to mean the end of the world. Corrections/pullbacks do occur. We will know more on how this is pulled back.

The SEMIS were strong yesterday. Watch them. If they lead, market has very little chance of getting in big trouble.

Watch BA…again the leading DOW name.

CMG, IRBT, MTCH up this morning. STI/BBT doing a merger and up nicely.

FEYE, NXPI, TWTR, FCAU, TPR, PRLB and a few others down on numbers.


4 replies
  1. Avatar
    les brown says:

    Hi Gary,
    Saw a good chart recently that showed the bear in 90 and 2008. Point taken was that after the first leg down the bounce rally lasted two months and the spx failed at the 200 day as it is appearing to do now. Second leg down started. I guess we will know soon. Any thoughts? Patterns often repeat themselves.

    • Avatar
      Double dee says:

      Yes the next leg down will retest the recent lows of Dec… we will bounce and at that point we will see if we hold and make a higher low… the jury is still out , take profits here and wait for 200 day is breached.

  2. Avatar
    kent hughes says:

    I remember in October of 1987 after the crash many technicians thought we would repeat the 1929-1932 pattern of a 90% decline including our very own Bob Farrell who thought the 10/19/87 low would not hold. Well it did hold (DJIA ) and we did not have a 90% decline. I think the WSJ even showed the charts next to each other yet they had ultimately quite different outcomes. I agree they sometimes repeat themselves and sometimes they don’t.

  3. Avatar
    Peter LaBarca says:

    What we haven’t had is the crisis, the September 11th or the credit freeze and derivatives bust of 08. Right now we could very well see a bear market without a crash. Hopefully that’ll be the worst of it. Gary knows more but i don’t think we’ll see new highs until we at least test the lows.

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