Reader Mail: Dow 7,300! Hindenburg Omen Rocks!
Wow. Here I go and try to point out some silver lining in the recent market gloom and you folks are for the most part ... gasp ... even more negative.
If you think 9,500 on the DOW is alarming here's what I'm expecting if everything really does "unwind" — 8,000. — Sam
I think 9,200 is conservative. Companies are way overvalued. — Jim
Exactly what is so wonderful about capitulation? Who would be fool enough to take their losses now. — Jeffrey
No way it will stop at 9,500 — when oil hits $200 a barrel in late August the market will tank and not stop until it hits 7,300 — Hard and dark times ahead for everyone! — Calvin
You are setting your sights too high here. Sure we will have slight rallies here and there, but the next support levels you need to be looking at are 10,800 and 7,300 (2003 low) for a more solid support. — Dave (p.s. it's not doom and gloom if you are right!!!)
Of course, there was the share of media critique as well. And some scary notes in and of themselves.
Thanks for Dow 9,500 post and need to report scary numbers, a good clarification — but do you run the risk of a self-fulfilling prophecy? ... Does that make you guys an accidental market maker as well? If so, start driving it up already and end this slump! — Jeff
I'm a smart guy, and I say that CNBC is contributing greatly to the negativity in the markets with just this type of story. — Mark
Capitulation as "good news" today is just plain wrong. ... In this case, when investors throw up from sea sickness, the captain is just going to hand out life jackets. — David
I have recently taken a position as a financial advisor with a major firm. What could this kind of decline in the Dow mean to a new broker trying to obtain clients and explain the markets? Any advice or suggestions are appreciated. — William
William, dude, you should be telling ME.
Airline Oil Speculation
Anyway, I received a few missives regarding the irony of Southwest Airlines protesting oil speculation as well.
I do not have a problem with a company that actually purchases fuel by exercising the futures they trade. I do have a problem with entities buying and selling futures that have no intention of using the end product. — Chris
Do you really think Southwest has no worries because they were fortunate enough to hedge some of their fuel? This is an industry crisis not a PR move. This situation is dragging the entire industry under — get a clue. — Airline Employee
Well, those hedges are worth quite a bit now. So much that it might be more profitable to cash them in than use them, depending on what oil does.
My musings about the appeal of earnings stories also got some reader wrath.
Your Eye-Catching Words and Earnings Season article is the perfect example of smug journalism. (Somehow, I doubt you'll have huge challenges getting readers to pay attention to earnings!) — Mary
I think you could add "Lagflation" to your list of words that draw people to headlines. — Douglas
I believe it is not as attractive as she not her. I have noticed broadcast financial journalists seem to go for grammar lite, especially on CNBC. — Trudy
Ouch. You got me fair and square on that one, Trudy. I guess when Paris Hilton is involved, my "Elements of Style" goes out the window. And Mary, depending on the results, you may be right.
The Stock Market Omens
Finally my point that the Hindenburg Omen story, for all its spooky attraction, may be overblown mathematics got some reaction too.
Let's knock a technical indicator with a good history because it has a neat name. — Mike
Seems as valid as the rest of the gobbledy-gook presented everyday as prognostication. I mean — "the market is putting in a head and shoulders formation" — give me a break. — Steve
Why, oh why would you print such garbage? I think you media types just love to put some spook in the market. Is your life really that boring that you have to try to cause a market collapse? Get a life! — Lori
Wow, so you spend an amount of time and pixels to bash what another journalist in your own company put out. Wow, really makes you wonder why you bothered. BTW — as a little bit of feedback, the picture of you with the phallic symbol shoved in your mouth comes across as arrogant. — Rob
Wow, Rob. I've never heard such a reference to cigars before! How original! But he represents a small but vocal (and basically impolite) few who've written in to take issue with my homage to J. Jonah Jameson and Perry White. Like this lady:
FYI You look like an idiot with that cigar in your mouth. --Linda Tripp
Hmmmm .... that name. You think?
Have a great weekend!