StockTock.com discusses the huge selloff today on large volume. This was the lowest close for the S&P since July 15. Weakness was broad based, but focused on financials and commodity stocks. LEH was down 45% and AIG finished lower by 19%. It appears hedge funds are being forced to liquidate positions. This is not a market to be calling a bottom in. Follow the momentum. The market can fall a lot further! We look at SPY, XLF, LEH, AIG, QQQQ, UUP, USO, GLD, KOL, SLX, OIH, EEM, FXI, TNX, VIX, and Elliot Wave S&P.
What are your thoughts on Lehman? Apparently they will report their earnings tomorrow, I think people are going to turn around and look at other bank’s earnings and assume that it won’t be as bad as predicted. Maybe Lehman could turn around starting tomorrow, for a short term push higher, before continuing on it’s path to destruction.
Wouldn’t touch it. Toxic.
Craig,
Videos are great. I like the eliot wave analysis. I have been following the website since you started. Your videos and analysis keep getting better. Thanks for the excellent work.
Grest vid. Great blow by blow commentary today. Your site is proving itself to be more and more valuable every day.
Good job in not getting cought in the rally up yesterday. 1215 is on the way! Unfortunately that may not prove to be the bottom. The commodity sell off and the “war” is a very interesting pardox. Those bastards that drove this market up are getting it handed to them. I hope the SEC and lears their lesson (and the financials) which will lead to a cleaner more efficient market in the future. As I learned the hard way with some of the financials, don’t go after the falling knife. Commodities are still extended. To me this is a natural event caused by the real estate slow down and the financial crisis that followed. I would look to see it some of the transportation stocks (mainly railroads NSC or BNI and others) to keep falling as well. Could be a good short there.
My GLD call looks like it may come to fruition. I like seeing the double bottom.
Look for the market to act similarly to last friday. Down 100 then back up to even.
Craig,
Started following you last week and I wanted to thank you and the team for the wonderful intraday commentary as well as the EOD video summation.
Cheers
http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=LEH%3AUS&sid=aEFIqyHW4SP8
“Merrill Lynch analyst Guy Moszkowski said in a report yesterday that Lehman may report a loss of $6.50 a share, wider than his earlier third-quarter loss estimate of $3.94. Oppenheimer & Co. analyst Meredith Whitney predicted Lehman will take a $4 billion writedown on residential and commercial mortgages and leveraged loans. ”
Doesn’t sound net positive. Playing LEH right now is like playing Russian roulette with 3 chambers loaded