Friday, June 27, 2008

Market Update 6/27/08

The Dow was down for the 4th straight week, losing 4.19%. It is now at its lowest point of the year, having lost over 1200 points 14.5%, and over 20% since October. GM is selling at its lowest since 1974. The NASDAQ has lost 12.7% YTD. The coal stocks I liked two weeks ago have all flattened out. The projections I'm seeing show another drop of 600 points, possibly by the end of next week.

The good news is a summer rally is in the making, although it's projected to be a short one; 12 weeks maximum.

Long term, we're at an interesting point. With the fed undecided on whether to raise or lower interest rates, they are therefor nuetral leaning towards raising them. That means, historically speaking, that paper and forrest products are the place to buy. This group has some of the ugliest charts I've ever seen. Some of these companies have lost over 70% just this year. It would take alot of guts to buy anything in this group. But, who knows, maybe in two weeks it will all look different.

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