Wednesday, February 4, 2009

New lows

Since the November lows, almost all sectors and stocks have risen and are now higher. However, a few key stocks and sectors have made additional new lows and I think they are sending an important message that the current correction is not yet over.

The Dow Transports ($TRAN) made a new low:

The Banking index ($BKX) made a new low:

Bellwether General Electric (GE) made a new low:

Caterpillar (CAT) made a new low:

JP Morgan (JPM) also made a new low recently:

Dow Chemical (DOW) is in free fall:

Internationally, the French stock market blue chips ($CAC) made a new low:

None of these is good news and all portend further weakness in the markets before the spring rally can occur. I am still looking for a re-test of the November panic lows in the S&P 500 and Dow Jones Average. I remain short, primarily via KSS, NEM, GFI and PAAS.

Wikinvest Wire