Market Monitor

• The Market Monitor spent just one day (12/10/2007) in green territory before turning red again.
• In last 5 days we have had 4 negative days and 3 of them with 300 plus readings.
• Readings on stocks down 25% plus in 65 days are at highest level in last 16 days.
• The readings on stocks up 100% plus are steadily declining.
• Yesterday saw profit taking in leaders which were holding on to gain.
• The news is bleak with talk of recession and stagflation dominating.
• However with 5 days of selling behind us a reflex rally might be a possible scenario here.
• A ideal scenario wold be more panic selling which drives reading on some of the things like stocks down 100% plus and stocks up 25% plus in 65 days to extreme levels from which sustainable bounce develops.
• But I will not be surprised if we get bounce at this level. The Feds across the world are coordinating a massive intervention in financial markets and that should provide an impetus for a "don't fight the Fed rally".