JPGM: Interesting portfolio, Nickels, Uranium, Copper, Beverages, Banks and convert notes. Good choice of small caps too. Only comment is a bit bank heavy, but again dependent on where you bought them from. Have you read BJ's report on the banks?
You are right about the volume, lowest day of 09. That is a big concern for the bears. But the rate of declines vs advancers was 10-1. That's telling too.
How I read last night's trade was the short term long money sold out during Europe before the data. The data came, and the shorts had a party. It stabilised around 900, and some longs came in to pick the bounce, along with some weaker shorts too. Come 3 pm US time, it became obvious there wasn't going to be a wave of buying, and everyone who went long dumped. That broke the 900. The day trade shorts would have probably covered at the last half hour.
Couple of thoughts.
Anyone who thinks the economy is going to recover at the rate the stockmarket has, is dreaming. There is little doubt that unemployment is going to hit double figures through the "First-world" countries. I hope all of you understand what it means. 1 in 10 people in America, UK, and throughout Europe will be unemployed.
That means consumer spending will shrink, drastically. Next week will give a clearer picture as to how long it will take for things to get better. Look for forward projections by the likes of Home Depot, Microsoft, Caterpiller and General Electric as a real guidance to the economy.
As for today on our market, don't be too quick off the mark to short it either. I'm actually inclined to go long today, as the States is off tonight, it will be dependent on Europe how they perform tonight, and I think Europe overdid it yesterday.
I still favour a sustained move to the downside, but I think before placing shorts on you probably need to wait to see what's going to hold up. For the market to fall further from here you need the resources to continue sliding, the banks to get hammered AND you need Nikkei and Hang Seng to get obliterated.
Not so much advice, just cautionary words to the bulls, that things have unfolded as they were expected to (was anyone REALLY surprised by the jobs number?) and markets should now unfold as they should, after a quarter of hot air.
Oh and to those stalwarts on the thread, if I have irritated anyone by my bearish posts, apologies. I thought the general idea was to share opinions and information (in the case of some, maybe not so much share, but to piggyback).
Tadewi, if you get a chance, can I have my dim sim menu pls.
(20min delay)