Thursday, February 5, 2009

Some other important new lows...

My last post forgot to mention some additional important new lows made by blue chip, bellwether stocks. Again, this exercise is important as it demonstrates deterioration in fundamentals and investor sentiment bubbling/boiling/festering/screaming below the surface. How about Proctor and Gamble (PG):

Perhaps Microsoft (MSFT) might be even scarier, as this is a company with 20 billion in cash on its balance sheet during a deflationary bear market:

Of course, we shouldn't have to worry about Wal-Mart (WMT), because if it can go down during the Greater Depression, then every other retail business is basically screwed:

OK, anyone still feeling bullish right now? If so, you need to get off your meds and turn Cramer TV off. Re-testing the panic lows in the general market stock indices seems like a no brainer to me now. I'm thinking the lows are going to hold (at least for now)...

Remember that my favored scenario is a re-test of the panic November lows in the general market indices in the next 1-2 weeks, possibly with a close or two slightly below them as a bear trap, followed by a barn burner rally into the spring. After the anticipated March or April top, I expect a plunge into chaos. Don't say nobody warned ya!

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