Resources held Australia up comparitively to other markets in the finacial crisis and now they will drag us down in the worldwide USA-led recession.
Oh and by the way you know things are getting worse when you see this from the USA:
" "It's liquidation selling. On Monday and Tuesday there was much more discrimination in what was being done. Today is more like a going-out-of-business sale. We've decided to get in cash, so everything must go," said Art Hogan, chief market strategist at Jefferies & Co.
All 30 of the blue-chip index's components ended lower, with the declines led by Alcoa Inc. off 13.4%.
"The third quarter of 2007 was the start of the earnings debacle," said Johnson, noting the 4.8% drop marked the first time in 22 quarters that the S&P 500's operating results showed a decline in earnings on a year-on-year basis.
Six months ago, investors thought there was a chance that year-over-year earnings would again turn positive in the third quarter of 2008, said Johnson. "We're down 10.8% so far from [the] third quarter of 2007. The second piece of bad news is the number of positive surprises is down, and the number of disappointments is up."
Volume on the New York Stock Exchange topped 1.5 billion, and for every stock on the rise, six fell. On the Nasdaq, 1.1 billion shares traded, and decliners topped advancers, also by a 6-to-1 ratio. "
Notice a resource stock leading the DOW down. The USA treasury and FED are now out of bullets. They have done all they can. Now they can only watch and let this recession and bear market play out.
There is a great truthful article on MW right now about ratings agencies drinking the "kool-aid" as they were colluded into giving ratings far better than ever should have been in an effort to win more clients and revenue. This was a big contributing factor to the massive risks left unchecked in this unravelling financial depression.
My DOW target is 7000 in coming weeks and 3000 around by Christmas. My XJO target therefore is around 2700 by Christmas. I even changed my super to cash three weeks ago and am now reaping the benefits.
The reason this should scare anyone left who is still long is that I'm a 26 y/o options trader who lives at the pointy end of the stick that is risk, and even I was worried about my super.
Never fear as you can make back you're losses by going short, as I've found. It's not too late given true USA recession fundamentals are only just beginning to filter through for the first time this month.
This is important because XJO will of course follow DOW like a lamb to the slaughter.
Although we have a lot of lambs over here atm, in our increasingly unviable/uneconomic resource stocks.
Asia getting hammered as I write, and the countries with the biggest problems generally are the USA and UK.
Look at USA, AUS, UK, FRANCE ect main indices and you'll see relief rally's are nearly over. The next leg down is about to take place. You can't fight the trend. Especially a exponentially recessionary tsunami.
(20min delay)