Thursday, August 16, 2007

How bad was it earlier today?

This was from RevShark over at around mid day during the worst of the selling:

After two failed bounces, we are now hitting new lows intraday. The extent of the carnage out there is mind-boggling. Almost 30% of the stocks on the NYSE are hitting new lows, and the percentage of stocks that are trading above their 40-day simple moving average is down to less than 8%. That level is very close to the levels we hit at the bottoms back in 2001 and 2002.


Really puts into perspective the level of carnage out there - the averages are NOT telling the story - it has been day after day of 8 to 2, declines to advances for weeks on end with just some minor rallies in between. I think anyone buying in here with new cash will be very happy in 3 -4 months, however, next week might be frowning :) or not! So many moving pieces, much of it out of the control of any sense of logic with the hedge funds so leveraged and unwinding - the extent still needed to be unwound is unknown.

It is very tough to subsist in markets like this where fundamentals are useless, but eventually there will be a return to a time 'things make sense'. Until then its mostly going to be emotion/liquidations/technicals. Generally the short term *IS* usually dominated by 2 of those 3, but this liquidation overlay gives this sell off an entirely different complexion.

Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012