This Is Capitulation

October 6, 2008 at 12:31 pm  ·  Category: Market Commentary, Sentiment Analysis, Technical Analysis

This is capitulation:

  • “Whatever money you may need for the next five years, please take it out of the stock market right now, this week” – Popular financial guru Jim Cramer on the Today Show this morning.
  • The S&P dropped more than 200 points – 17% – over the last 6 trading days at its low today.  That’s a years worth of losses in 6 days.
  • The Fear Index (VIX) spiked up over 58 – higher than at any point during the 2000-2002 bear market.
  • 50% of the stocks traded on the NYSE (1644 out of 3294) are currently at 52 week lows – totally unheard of.

I put a good chunk of money to work today.  You shoud think about doing the same.

Posted by Greg Feirman  ·  Trackback URL  ·  Link
 

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