Brooksie’s Daily Stock Market blog
Thursday, August 11, 2011 9:03 am EDT
DJIA: 10,719.94 S&P 500: 1120.78
The tag- team of uncertainty and fear are taking turns to roil all markets worldwide. There was no follow through to Tuesday’s late-day, 600-point DJIA surge. Yesterday’s open was down out of the gate and sellers sat on its afternoon rally resulting in a 520-point down day.
Uncertainty in that no one knows what will emerge next from Europe;.
Fear for the obvious reason, portfolio values are getting crushed and investors are panicking that the worst is yet to come.
We have passed the “ouch” point and are heading for the “I can’t stand it anymore” point where distraught investors bail out of everything .
My August 1 blog, (DJIA: 12,385) “Odds Favor Rally Failure – Another Leg Down,” called for a drop to DJIA: 10,700 – 10,830
(S&P 500: 1150). It did that.
However, breaking that, I called for a drop to DJIA 9,680 (S&P 500:1050).
That is now on the table, but with fear mounting at warp speed, we can get a grand climactic selling climax, or several climactic selling climaxes short of that level.
Jobless claims for the week ending Aug. 6, were down 7,000. The U.S. stock-index futures dropped after the 8:30 announcement.
Right now this is about European sovereign debt, with France the prime focus, the U.S. economy runs a close second.
Get ready for the prospect of a huge selling climax tomorrow or Monday.
George Brooks
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The writer of Brooksie’s Daily Stock Market blog, George Brooks, is not registered as an investment advisor. Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole basis for any investment decision. Readers are expected to assume full responsibility for conducting their own research pursuant to investment
decisions in keeping with their tolerance for risk
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