Looking for a Heck of a Bounce
It's not often that you see entire sectors decline on the order of 20% to 30% in the span of a few days, but that is what we are witnessing. Steel, for example, is down 28% from 11 days ago. Sector after sector, each has experienced destruction. The financial sector is down 21% for the same time span. I don't need any technical projection tools to decide when it's time to do a little buying when this kind of carnage happens.
I was fielding questions yesterday about how this selloff could occur. Earnings were pretty good as was guidance. Yes, there are some problems, but they have been around for quite some time. What changed? Well, not much changed really other than a few technical levels on the charts. You could say it was Europe, but the continent has been a problem for some time. It was an issue last spring. It will probably be an issue next year. Pushing out more and more debt will never fix the debt problems, but it can delay the changes ahead....437 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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