Monday - June 22, 2009

Screenshot from http://finance.yahoo.com/

The markets slide today. S&P500 dropped -3% and is below 900. It is slightly below the 200 day moving average which is about 900.76. Oil dropped -$2.52, at $67.50 a barrel.
The drop in everything is partly due to the World bank said that it expected the global economy to shrink by 2.9%. It's last prediction was 1.7% in March. When the World Bank is seeing worse in economy, one can guess the reaction in the markets - exactly what we saw today - selling from the rally we've had since March.
I see today as a reality check. Investors are jumping too far ahead of fundamentals. Less bad news are not good news.
Unfortunately to me, Apple (AAPL) is still very high at $137.17. Steve Jobs had liver transplant. It looks like there is a chance that he will come back.
When S&P hits ~850 or Dow hits just below 8000, the market will be 10% from it's year high. It will be time to get in.


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