Wednesday, November 07, 2007

Current Correction Market Stats

You wouldn't know it by the NASDAQ, but we're in the 4Th week of a correction on every other index.  The small caps are almost down -10% and all the other indexes, except the NASDAQ, are down 6%+.  One by one they have been hitting the leaders.  There is now just a handful that have not succumb to the selling.  The damage though is minimal on the large cap tech leaders.  Which plays into my theory that this is another correction (another nasty one, Feb/Mar, Aug/July, and now) on the way to the ultimate climax run to NASDAQ 3000 and China Olympics.
 
If I had to theorize on what is happening right now, I would say the market is selling off in anticipation of really bad investment bank earnings(they may be surprised or they may finally throw the baby out with the bathwater) and a FED(DEC 12Th) that will hold pat on rates in early December.  Once that news is out of the market's system, we could get the next leg up and refocus on the large cap technology leaders.  The market may even start moving higher before that as it has ahead of other major news events this year.  In either case, the market will potentially present better buying opportunities over the next few weeks.  For now, I would hold off from committing new money to the long side until we can rally in the face of bad news.
 
This will be fun to watch.
 
 
11/7/2007  Correction   Correction Levels 
Index  52 WKH   Start   Length   Low  % 10% 15% 20% 25% 30%
Dow Jones Industrial Average  14,198.10 10/11/07       4.00  13,285.63 -6.43%  12,778.29  12,068.39  11,358.48  10,648.58  9,938.67
NASDAQ Composite Index    2,861.51 10/31/07       1.20    2,748.31 -3.96%    2,575.36    2,432.28    2,289.21    2,146.13  2,003.06
NYSE Composite Index  10,387.17 10/11/07       4.00    9,824.20 -5.42%    9,348.45    8,829.09    8,309.74    7,790.38  7,271.02
Russell 2000 Stock Index       856.48 10/11/07       4.00       775.37 -9.47%       770.83       728.01       685.18       642.36     599.54
S&P 400 Mid-cap Index       926.67 10/11/07       4.00       869.66 -6.15%       834.00       787.67       741.34       695.00     648.67
S&P 500 Index    1,576.09 10/11/07       4.00    1,475.04 -6.41%    1,418.48    1,339.68    1,260.87    1,182.07  1,103.26
S&P Small-Cap 600 Index       445.82 10/11/07       4.00       401.55 -9.93%       401.24       378.95       356.66       334.37     312.07

 

 

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