Saturday, September 24, 2011
Another One Bites the Dust
I am referring to Portugal's stock market ($PSI) quietly sinking below its 2008-2009 Armageddon lows and closing below these lows on a weekly basis. Portugal joins Greece in achieving this dubious distinction. Here's a 3.5 year weekly chart of $PSI thru Friday's close to show the recent action and break down:
Far from being a sign that the worst is over, this breakdown may portend another 50% drop in the Portuguese stock market if Greece is a guide (and I don't think the Greek stock market is done falling, either). The Spanish and Italian stock markets are only about 10% above their March, 2009 lows. Meanwhile, mainstream US financial media continues to debate whether or not we are even in a bear market yet! Gotta love tout TV and its intentional misleading of the average investor that is trying to learn something by watching.
Last week's market action was brutal in the precious metals patch as well.
It is shaping up to be an interesting fall, to be sure...
I don't think the US Dollar rally is over and I don't think the stock market slide down the slope of hope is over, either. Specific trading recommendations reserved for subscribers.