11.09.07

11.09.07

            Investors who were long got punished across the board. All indices were bloodied, but the NDX took the biggest hit of 8.11% for the week. The markets took no prisoners, if you owned it, it cost you. The market was down four of the five days and the deeper we got into the week, the deeper the losses. The SP 500 lost 3.71% and the R2K (Russell) took it on the chin for 3.18%. The week was filled with bad news, and the rumor mill just kept chugging away. The last half hour saw a wave of  late selling. The late selling appeared to be driven by a growing sense of uneasiness in holding positions over the weekend. Traders have a high awareness that the ‘headline risk’ surrounding the financial sector remains on high alert, and for good reason. The COMP and the NDX are still above their 200moving average. The SP 500, the R2K, and the DOW are all below theirs, which is always a bad sign of things to come. Right now it looks a lot like the correction we had in August and so far not a change of trend. It will still take at least a week or two for that to play out. We will stay in cash and watch the drama play out. We remain flat and happy going into next week.

Till next time

The MTA Staff