Getting Uglier and Uglier

The credit crisis is clearly affecting sectors outside of Wall Street at this point.  Transports and other Industrials, Materials, Technology, and Energy have all really fallen out of bed today. 

Currently, no stocks in the S&P 500 Industrials sector are trading above their 50-day moving averages, while just 3% of Tech stocks are above.  And anecdotally, two stocks that are pretty good measures of how business is going are Deere and IBM.  Their declines this week indicate pure economic destruction.  The way these stocks are trading, tomorrow's House vote is already too little and way too late.

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Comments

[Lazy Al:]

Your article proves beyond doubt the market has fallen sharply in the past year.
Duh.
Look at charts from the bear markets of 1987 and 2002, maybe you'll learn something.

2008 Oct 02 10:03 PM

[Steven Hansen:]

i still like your charts.

2008 Oct 03 04:26 AM

[dc1:]

To Lazy Al,

Add something constructive or SHUT UP!

2008 Oct 03 11:51 AM

[Lazy Al:]

OK, dc1, I'll add something constructive:

In the year from Sep 2001 to Oct 2002, IBM went from $120 to $56-- a much steeper decline than during the past year. It pays to keep things in perspective.

Now YOU can add something useful--or shut up.

2008 Oct 03 01:25 PM