Monday, August 8, 2011

The selling continues

Friday after market close, S&P lowered the credit rating of the US, so the US is losing it's AAA rating. The market had a whole weekend to digest this news, but to no avail.
Futures opened lower about 2% on Monday morning. S&P-futures found support on 1162 during pre-market. Less than an hour in the session, we lost that number, retested it but got rejected and lost about 50 points from there on! Most indices were down 6-7% intraday. We then got a 50% retracement in the day's range, but 1150 stopped the rally. The last hour an a half brought back the bears, pulling us down towards the day's lows. Indices closing at the lows of the day is not good news...

At this point, we lost +15% in 11-12 trading sessions, therefor being extremely oversold.
Which doesn't mean we'll bounce here. The longer we stay oversold like this, the bigger the chance we only get a minor bounce. One thing's for sure, the bears had to wait a very long time to finally get it right, but they are fearce!

In all this blood and selling, gold remains the safe haven and hits new highs. Silver follows higher, but not as strong. Oil is also selling of, now close to the 80-level, from 100 only 2 weeks ago. At least we'll drive around cheaper.

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