I’m short on time tonight, but I trust you find I am hitting on all cylinders when it comes to cutting to the $64 questions and posing points to watch for. So, let me pick up where I left off at the weekend and here are some of the answers we were looking for just three days ago:
Likewise, the 12292007 New Year RonIandex of Leading stocks broke the 17-dma and is headed down to test the 50-dma. This Index has been hit hard in just two days and the five key leaders have taken a reasonable hit…AAPL, GOOG, RIMM, GRMN and BIDU. The best stocks will correct from 15% to 20% and many of RonIandex are already down to this level. Only the likes of JASO and a couple of others are holding up well. The reaction to the AT&T CEO discussion on CNBC where he did not seem to have a rosy outlook was partly responsible for the swoon in the market along with the concern that Countrywide Credit has more trouble ahead with a drop of 17% today. It goes without saying that the intraday swing on the DOW is now routine, being up more than 100 points during the session and finishing down -238.42 points to 12,589 or -1.9%. Given all of that the DOW has dropped 675 points since the start of the year with a loss of 5.1%, its worst drop percentage wise in five days since the first week of 1978, when it lost 5.6%.
You have the barometer to guide you from the previous Blog Note, and turning to the Nasdaq which has easy yardsticks to remember, we have already come down through two of them at 2600, and 2500, and we are but a scant 40 points to get down to 2400, so hold on to your hat and watch out. I hope my picture of the two dogs says it all…we had a English Springer Spaniel just like the little fellow on the left with markings which was natural to name him “Saddle”! Those were Happy Days and bring back fond memories. Don’t end up like the little fellow on your right. Remember I repeat it time and time again “When the Wind is at your Back…Attack; When it is in your Face…Disgrace!” Good luck.
Best regards, Ian. �