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Jul 17, 2006 - Issue #015
Well, as mentioned last week, we didn't have to wait very long to find out "What is that
ticking sound?", did we?
The big question now is: Where does the market go from here?
The phrase most heard on CNBC is "buying opportunity". Is it really? Given the track
record of those guest "experts", I have my doubts.
Certainly, a critical examination of stock charts gives little cause for the bulls case.
Just a few items: (1) Gold and oil are up, not down. (2) Equity markets the world over
are down, not up. And (3) the middle eastern war/oil situation looks odds on to be more
of the same.
If that looks bullish to you, obviously, you see something that I don't. In fact, this
could have a long way to go before the worst is over. This could be just the beginning
of the ride down. Who can tell?
My point: Until the market shakes out all, and I mean ALL, of the weak hands, does
this market have any reason to stage a rally?
Only 1 of the 30 Dow components was up for the week: Exxon Mobil (XOM), the only oil stock
in the Dow. Wouldn't you know it?
Trendwise: 9 rising, 9 consolidating, and 12 declining, in my judgement.
Intel (INTC), on the weekly chart, seems to be holding up rather well, in the face of
all this. That could change, but so far, so good.
Selling off money-losing operations and eliminating 1,000 middle managers (1% of the
work force) may be bad news for the employees affected it is the smart business thing
to do. And it's better for the remaining employees.
Comments? Ideas? Feedback? Let me have it, right between the eyes! I'd love to hear from you. Just reply to this zine and tell me what you think!