BEHIND THE MONEY: Can the Market 'Hold the Line'? Traders Say 'No'
With the Dow average heading into this day just 110 points from its credit-crisis closing low set last month, this is clearly a make or break day for the market. We plan on debating at length tonight whether major indexes can indeed 'hold the line."
Stocks are up slightly this morning because...well...we have no idea. You would think that after lowered forecasts from bellwethers such as Intel and Wal-Mart, along with a a surge in jobless claims to a 7-year high, that indexes would surely be lower. In fact, we declared that "Intel's Warning Points to Bad Day Tomorrow" on last night's show as well as on our website.
FM Trader Jeff Macke said this morning that he will be dumping any stocks into this false rally. The market is likely to rollover as more people follow his lead, he suspects.
Dennis Gartman, a frequent guest on the show and writer of the must-read "Gartman Letter", tells us this morning: We've observed that "since the bear market began in earnest in late '07 that the volume rises as prices fall, and it falls as prices rise. This is all the more ominous in light of yesterday's rising volume" on a day when the Dow lost 400 points. Translation: Look out below.
We're also watching Goldman, Citibank and Google as market barometers. They are all solidly in the red this morning. Without these stocks higher, which are some of the most-owned and most-watched these days, it may be tough for the market to stay higher.
As for the debate tonight, look for it to be accompanied by the great hit "Hold the Line" by Toto. Unfortunately like Toto, this morning bounce is likely to have disappeared from the scene before tonight's show begins.
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