I participated in a bad medical call for the fire department very late last night so this will be short and the thought may not stand up.
We are faced with a lousy tape, terror threat at home, nuclear issues in other countries, spectacular corporate corruption, I just heard on bubblevision the bulls equaling bears (like the recent survey) last happened in 2002 and I don't remember if there was a big merger or not like with the gas deal today.
I don't know if there is a comparison to be made or not but from mid May 2002 to mid July 2002 the S&P 500 fell from 1100 down to 800 which works out to 27%.
I do not expect this down move to be anywhere near that big but for the moment I think it lends visibility to a little more selling before a bottom is found.
Wikinvest Wire
2 comments:
Roger,
How close are you to the Coconino fires? This summer already looks really bad compared to the last 5 years. Stay safe. Thanks for your response to my last post about amateur investors getting in and out of the market with such horrible timing. The new inverse funds shorting the market have caught my eye. I am curious to learn more on how they can be used as a hedge to decrease volatility in my portfolio. Tom in Indy
Tom,
We very close. Coconino forest is next to the Prescott Forest. Which is where we live. Sedona, where a lot of the fires have been this year is an hour by car.
There is a very high fire danger every summer, where we live and that just goes with living here instead of huricanes or tornados.
I plan to write about the double short and single short ETFs once the double short ones come out.
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