The DOW ripped off 200 while the S&P dumped 28. The thing went south from the bell as futures were actually way down. No recovery occurred and the bottom seemed to keep dropping.
Based on the sketchy news available it would seem that there are three possibilities for the week.
The market holds and goes sideways once again - best scenario
The market sheds a bit more and then goes sideways once again - second best scenario
The market keeps diving because the bear market rally has run its course and the economic data that investors will be seeing this week does not support further elevation and suggests more devaluation. This scenario comes in two forms, light and heavy. - either way, can you spare a dime?
Reuters: Wall Street drops with energy companies, economic worries
...a sharp drop in oil prices prompted investors to sell some energy companies' shares, while a global forecast fueled worries about the sustainability of an economic recovery.
2 comments:
It's sad that the market's seem to be tied to OIL. Even pathetic.
The US is one of the world's greatest producers of oil. We tend to forget about that because we use oil far grater than any other country possibly with China right in it neck and neck. We use so much we have to import massive amounts.
If you look at the Norwegian stock market for example you will see that the top traded Norwegian companies are all oil and energy companies because Norway is an oil producer. So the Norwegian economy is completely linked to energy. This happens.
Because the US is a top 3 oil producer, we have tons of energy corporations, from drilling to pipelines to shipping to production all of it plus there's Canada and Mexico. I suspect its possibly the largest sector of corporate activity in the US. So its right in the middle of the whole monster.
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