Too Many Unresolved Systemic Risks Plague the Market

The primary trend for equities remains downward and bearish. Same old news…The market failed to follow through on Thursday’s rally as traders opted to book profits vs. holding stocks over the weekend. Volume was much lighter on both major exchanges: down 24% on the NYSE and down 25% on the Nasdaq.

The fact that bears can push the market down to support levels without a sustainable rally from these levels makes me wonder if the market favors a breakout on the downside. Then again, Thursday’s buying on increased volume signaled legitimate accumulation. Too many unresolved systemic risks plague this market, ranging from housing to banking and now to automotive manufacturing. It’s all a Gordian knot and the only way to solve it might be by the sword. This would indeed be bloody.

Disclosures: None

Comments

[tedS:]

If it does pay to be a contrarian, then I should ignore your "bloody" prediction.

2008 Nov 16 05:38 PM