Near term thoughts on the waaaaay oversold condition!
Just wanted to reiterate something we said this morning in the report. On a short term basis:
“Markets are now beyond oversold and stretched to the downside on a near-term basis. We suspect any day now to see some vicious rallying/bouncing but that will not change the big picture. Keep in mind, in bear markets, oversold can get more oversold.”
This simply means markets are stretched way beyond the norm with a lot of fear picking up. This sets the conditions that can lead to a near-term washing out. Could be today. Could be next week. We do not pretend to know exact times. We just wouldn’t be surprised that after 1100 Dow points in a little over 5 days, we are getting closer to a good trading rally/bounce. Will keep you apprised.
Gary Kaltbaum
Looks like retailers have a bid already.
Early, but if the 1st week of 2008 is anything to go by, S&P should finish in the green today…I will be amazed!
Just glanced at CNBC Video web page. “Crisis” “Doomsday” “H Bomb”.
Sounds like time to buy.
mackcap
we are overdue for bounce/rally
Cant’ find but waiting for that short entry rally. I’m guessing around 17K would that area, 2010 on the S&P maybe lower?
China’s unleash of circuit breakers will bring more volitity, but can it produce a short term bottom bounce, or be the final match that crashes global markets beyond the central bank power to meddle?