The Closing Look

Stock Market Commentary:
Stocks tanked on Monday after a new round of selling began in China. Overnight, Chinese stocks plunged a whopping 7% which triggered a world wide sell-off across the globe. Stocks in China were halted after new circuit breakers were introduced today. Monday was the first trading day for the month, quarter and year and the worst opening day for Wall Street since 1932! As Gary has been telling you for months, the action on Wall Street continues to get weaker, not stronger.

Gary’s Thoughts: Decent rebound into the close which may enable some upside testing but that is the trees. The forest is simple. More deterioration on a day like today as we crossed off about 50 names that had been holding up. Odds favor after any bounce, more nausea to come. As far as China, we have been telling you for quite a while that they are nuts. If you restrict sellers, you just build up more energy on the sell side when the day of reckoning comes.