Dow Industrials Drop 300 Points to End Below 6800
by Lou Scatigna
Stocks hit a new bear market low today in the face of another massive bailout of AIG in the wake of a $61 billion loss in the 4th. I warned you this weekend that significant technical levels have been violated and a move to 6,500 on the DOW looks inevitable. Commodities were also smashed as the fear of a deflationary depression swept the markets.
Some of America's largest insurance companies were hit yet again. As you know ( I spent some time on my radio show talking about my concern about the health of the industry) the stock action of these companies look like AIG, Lehman, Citigroup and Bear Stearns before they failed.
Here are some companies that took it on the chin today:
Hartford 5.16 -.94 -10.7%
Prudential 14.77 -1.64 -10%
Metlife 16.51 -1.95 -10.6%
Lincoln National 3.65 -.49 -11.8%
Genworth 1.09 -.12 -10%
General Electric 7.60 -.91 -10.7%
Bank of America 3.63 -.32 -8.1%
Alcoa 5.49 -.74 -11.9%
We may now be moving toward an important low in the market. I'm not sure that we are close to the number bottom of the indexes. I am referring to the time frame. March may be the month that the low is hit, perhaps a crash like decline to 5,000 on Dow and 500 on the S&P.
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I have to agree on the DOW 5000 call. With all of this terrible news coming out daily, people are selling and others are waiting for a bottom. I don't want to admit it, but 5000 seems to be a growing reality, there's a general agreement among my peers as well that this could be the case.
ReplyDeleteMany have said that if we break the 7000 mark then we could possibly see 4000. It seems obvious that they are going to sap all the wealth from the people. They are building the foundation for Socialism and Fascism.
ReplyDeleteWe wonder how this could happen. Most of us rely on our elected officials to do the right thing while we are out busting our humps making a living. The common American has probably forgotten its school lessens on the functions of its own government. Many do not know who there representatives are, let alone, how to contact them. The people are the force that can make change but by the time they figure out these injust acts and get up to speed with them, it will be to late.
What a perfect plan!