NAUSEA AND THE PRE MARKET

Hey…the Giants won!

We heard yesterday:

One pundit say the action in the market doesn’t worry him a bit.

One pundit say this is how a bottoming process works.

One pundit say it is good news when they get names like AAPL and GS.

Our take:

Except for the DOW, all major indices and most countries trade below the longer-term 200 day moving average with many trading way below.

Many “death crosses” are now occurring. That’s where the 50 crosses the 200 day…a sign of even more weakening conditions.

Some of the 200 day averages are now turning down indicating price staying below longer.

Leadership remains defensive and few and far between.

Growth continues to act horrid.

Good news is sold. Bad news is sold hard.

Recent strong gaps to the upside off of earnings have been sold.

We do not need to predict. We deal with the evidence and facts at hand.

Markets are probably a little short-term oversold off of the recent drop…not sure what that will mean. Notice the NASDAQ/NDX failed in and around the 200 day average late last week. That must change.