The financial system, indeed the "civilized" world, is undergoing a massive unwinding of a multi-decade debt orgy. The process is painful and shows no signs of letting up anytime soon, even as many on Wall Street continue to try and pick the bottom, including erstwhile bears like Doug Kass and Steve Leuthold.Key companies that comprise the Dow were hammered. Citibank (C) dipped momentarily below $1 a share, closing at $1.02, with an Earnings Per Share over the past year of –3.88. It was down –9.73% on the day. General Motors (GM) closed at $1.86, with an Earnings Per Share (EPS) of –38.74, making holding onto the shares practically toxic. It plummeted –15.45%.— Aaron Task, TechTicker, Finance.Yahoo.com
The technical analysis is important to listen to. There is no predictive bottom.
The Russell 2000 continues to get destroyed here… There’s clearly nothing at all to suggest anything bullish on any of these charts on any of these time frames…
Don’t get locked into any one belief. Especially when you look at every objective fact on every single one of these time frames that just continues to scream “bear market.”
There’s nothing fundamental here to suggest a turnaround. It’s, you know, it’s, it’s basically as I said, a bad bet.– Brian Shannon, AlphaTrends.net.
This is not to act as a prophet of doom or pray for the worst. The worst is happening, regardless of our collective desires. Partially because of our unsustainable collective desires of the past.