Not quite, but the pain is being felt. While the bears run the risk of seeing a sharp intraday
reversal given the growing oversold condition of the market – the market is very much a news
driven animal these days with bad news actually being viewed as 'bad news”. Who knew!
This represents a key shift in sentiment as participants move from denial to using a more
focused and critical approach to assessing the fundamentals. So it's no wonder that the Dow
Jones Industrial average is now just a measly 29 points away from touching a 20% drop from the October highs, which would be defined as a “bear market”....
Our real worries, however, center around the credit markets. The Goldman short
recommendations on Citi and Merrill were an interesting side show, but largely un-noticed in
the media is the pending implosion of a major mortgage lender and a seizing up of a wide
swath of paper in the mortgage market,... (Find Out How to Get The Rest of Today's Report By Clicking Here!)