It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Originally posted by Wildbob77
The dow closed today Jan 18 at 12,099 down another 59.91 points.
I've cashed out most of my money. I'm not likely to buy back in till the economy looks like it's turning around....
I'm curious where the stock market will go this year.
Major U.S. indexes have broken key technical support levels, leaving the stock market vulnerable to further declines and the turbulence could get worse, according to chart watchers.
With the Dow now holding precariously above 12,000, a drop below this psychological level could help confirm the worst fears of investors -- the onset of a bear market, stock technicians said. A bear market is defined as a downturn of 20 percent or more below a record closing high. The Nasdaq Composite index has already fallen 17 percent from its 52-week closing high set in October.
David Schwartz - the celebrated stock market historian - reminds us that history warns the bull market of 2003-7 is over and UK shares are due for a solid thumping. Here is some important perspective:
The FTSE-Small Cap index has already entered bear market territory. It now sits 23 per cent below its mid-2007 high.
The FTSE-250 is not far behind. Cumulative losses penetrated the 20 per cent level for a short time last Friday morning before recovering a bit. This index of medium-sized companies has now officially entered bear market territory (on an intra-day basis). For those who choose to keep score on an end-of-day basis, the index closed last Friday night 19.6 per cent below its bull market peak.Now for the main index - the FTSE-100.
There were eight occasions since the Great Depression when a bull market boosted shares up at least 100 per cent in a bull market. The stock market fell more than 25 per cent in each bear market that followed.
Recall that shares rose by 105 per cent in 2003 to mid-June 2007 which makes the current downturn number nine in this worrying series.
Originally posted by infinite
Europe is facing a huge growing problem, and that is the Pound Sterling. It's lost 9% against the Euro within 8 months, today it lost 1% against the Dollar. If the UK suffers currency problems, our economy and the Eurozone is going to be hit. The European Central Bank and Bank of England are refusing to discuss the problem.