General Motors was downgraded to credit watch negative.....plunging ( GM ) shares 30% to close around $4.90 per share.
The Dow Jones Average crashed 678 points today to 8579. So what is the problem? Tons of sellers, and very little buyers. Many big funds are stuck in stocks at significantly higher prices and have been forced to sell....or when we do get a big of a rally, they sell. Today's plunge took about 45 minutes.
A sign that this would happen: Many of the European Banks sold hard into the close earlier today in the Europe markets so that gave me a hint to this happening.
We are due for a major rally off the lows.....1000 - 1500 points but where those lows will be is a good question!
I'd like to see capitulation tomorrow morning so we can finally put in a bottom. I'd like to see a major gap down..... maybe hit 8,000 on the Dow and then a stampede of buying with heavy volume. The problem is we always get these big down days and rally right after them. At this point, we need everyone to puke up stocks and that will attractive big buyers. The sooner we get this over with, the sooner we will move higher!
The Asian markets will crash tonight....you will see losses you never would have thought possible. In Asia tonight, it is Friday over there.....last day of trading for the week. They have no idea how we will trade tomorrow so it will be worse for them!
My Stock Shopping List: GOOG, AAPL, FCX, ENER, V, MA....these are the stocks I am looking at buying on the cheap.
Thursday, October 9, 2008
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