Dow, S&P and Nasdaq technical chart patterns resembling typical bear market rallies and then slow and steady fall to new lows
Karen Zuba
Sep. 22, 2007

The stock market has just started its downward journey after several decades of massive bull markets. But the rallies are fabulous. That is typical of the bear markets. The market slow drifts lower into new lows. Then comes the sudden short covering rally.

The U.S. stocks climbed after earnings from Oracle Corp. topped analysts'' estimates and lower interest rates helped revive takeover speculation, sending the market to its biggest weekly gain since March.

The brokers and savvy investors have started again saying ‘Liquidity is back in the market, confidence is returning’. The bear market is fueled by over optimism and catastrophic fundamentals. The ingredients of a chaotic long-term bear market are clear. The target for Dow Jones Industrial average for this year is below 11,000. That is another 15% decline from this price levels.

The Federal Reserve and ECB may lose their independence for massive mistakes in the last twenty years
Alex Brown
The sub prime mortgage fiasco is the creation of the central banks’ easy money policy. Now they are trying to put the fire off through the water hose called liquidity.
READ MORE>>

The Euro zone headed for a deep recession along with US economy – the financial meltdown accelerates all over the world
Joe Weinman
The unexpectedly steep fall on Friday in the eurozone purchasing managers’ index – the third consecutive monthly drop is raising massive concerns in the internal quarters of the European Central Bank(ECB).
READ MORE>>

Dow, S&P and Nasdaq technical chart patterns resembling typical bear market rallies and then slow and steady fall to new lows
Karen Zuba
The stock market has just started its downward journey after several decades of massive bull markets. But the rallies are fabulous.
READ MORE>>

China recalls on toys and cribs is the result of ‘low quality’ transformation of world’s major corporations – the trend will devastate world economy
Fred Day
Recall of China made toys and cribs is just the start of gloom and doom in trade and world economic expansion that started with major corporations throwing the concept of quality out through the window.
READ MORE>>

Catastrophic implosion in merger and buyout bubble forcing private-equity firms and their banks to forsake deals
Sam Adelton
Kohlberg Kravis Roberts & Co. and Goldman Sachs Group Inc. abandoned their $8 billion takeover of Harman International. It is the first sign of crumbling merger and bubble mania that swept across Wall Street for many years.
READ MORE>>

Yen ready to rise again as subprime problems start manifesting the real nasty third leg
Paula Ranske
Yen shot up and then consolidated for the last six weeks. The short covering is over. The bullish undertone is intact but the euphoric exuberance among the front end brokers have diminished.
READ MORE>>

Stagflation changing to deflation - Federal Reserve may have lost control over the economy
Media Release
Consumer prices in August fell for the first time in 10 months, as another big drop in energy costs offset higher food prices.
READ MORE>>

MORE ARTICLES >>