Nasdaq Tumbled again...

Riz

Experienced member
1,266 5
The Nasdaq dropped 178 points (7.1%) to 2332...thus falling through a seventh-consecutive session and finishing at its lowest level since March 23, 1999..as earnings fear mounted and Merrill Lynch made negative calls on Cisco Systems, IBM and Hewlett-Packard...investors seemed worried about the Federal Reserve's decision to leave interest rates unchanged...since it could be interpreted as trouble for the economy...

Investors as well as analysts seem divided as to how to interpret the Fed decision of leaving interest rates unchanged...(just as it took their lawyers to decide about the elections results, hand counting, etc..)

Todd Clark, head of listed trading at WR Hambrecht said, "I do think it's good news...But I think it is part of an overall psychology that the market is taking everything as bad news. I think we may be able to work our way through and eventually see it as good news."

While Alan Ackerman, executive vice president and market strategist at Fahnestock said, "There is a growing sentiment on the Street that [Fed Chairman] Alan Greenspan is playing tough guy with the U.S. economy..."

As a result, in the tech sector, the bears were particularly aggressive in the Internet, hardware and networking segments..

Bill Schneider, head of block trading at UBS Warburg said, "Earnings are disappointing and until there's some stabilization, the buyers see no need to step in and make their move. And unwinding of leverages positions and tax selling [is exacerbating] the situation.."

Some analysts started talking about Nasdaq testing 2,100..."There's a good possibility we'll test 2,100 on the Nasdaq. We probably need to see another washout day on high volume followed by a basing process that could last for months.." saidd Louis Parks, senior managing director at Raymond James...

Tom Peterson, publisher of the newsletter Bulls Eye Research said, "Any low made in the next few days, no matter how good it looks, will have to be tested. That also means there's no need to be a hero and try to pick the absolute bottom.."

Exactly right..no need to be heroes..and I don't intend to be one..but as a result of the points I raised in my other thread I have a feeling that tomorrow morning we'll see Nasdaq futures in blue and not in red..


(quotaions from WSJ and CBS.MarketWatch)

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traderx

Active member
146 2
Rizgar, whilst I respect your view, I just feel that this sell off is not over yet, indeed I think just the opposite. Economic conditions are deteriorating and even if we see a technical bounce NAZ will continue lower towards and possibly below 2000. I do accept that the market will at some stage price in the expected rates cut but my gut feeling is, NOT YET. The market is in free fall with negative direction and momentum and I see no reason whatsoever for optimism in the short term. So be wary, be suspicious be paranoid, be careful. MMs will take your Christmas presents and the shirt off your back. Merry Christmas.

No financial advice intended.

Tx
 

Riz

Experienced member
1,266 5
Hi Tx,
Thanks for both replies and adding your views to the posts...don't worry as I said in one of my posts I have no intention to be a hero..besides we members of this board are among the first predicting the clash months before it occured...it'd therefore be unforgivable to be also among those losing their shirts during this crash or for jumping in before getting enough signals..so don't worry Christmas presents are safe...I even managed to make some money using temperary bounces...of course trying not to leave my money in this market overnight..just popping in and out...

During my research of last 2 todays I started seeing signals of slowing if not stopping the crash, just trying to include those too in my analysis in which I try to include contradicting views of various analysts so we can look and think from different angles...as it's not an easy to guess situation...

Looks like you are a late sleeper like me..have a nice night and Merry Christmas to you too..

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waldorf

1
141 1
Doom and gloom is the impression one gets, small bounce on little volume tomorrow and Fri,leaving well alone until after the festivities.
Looking forward to 2001 could be very profitable.

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Col
 

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