Existing Home Sales down again -- think the market will go below 11,000 again?
Seems like this put a damper on all the earnings news...wondering if now's a good time to go short?
Answers
541 points
NYInvestor answered one year ago …
If today is any indicator then yeah, we might see the Dow below 11,000 before the weekend.
Let's face it, we're in a bear market. We might not go straight down to 10,000, but I can assure you that the overall trend for the rest of the year will be down. Pick the most vulnerable companies, in the most vulnerable sectors that haven't been completely crushed yet and you might find yourself with some amazing short opportunities.
2172 points
ChaosNantuko answered one year ago …
Probably not before the weekend, but i wouldn't be surprised at all if we were under 11000 by the end of the month. As NYInvestor said, we're in a bear market. In bear markets, stocks drop like rocks. To answer your question, i'd say now is definitely a good time to be short.
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3970 points
EthanR answered one year ago …
Yesterday was like a swarm of ants spoiling your birthday party in the park! But look at it this way. The market was really oversold last week, then we got some decent news from BAC and some better than expected bad news from a couple of other companies, so we had a little bounce, and probably a lot of short covering. But yesterday reality set in again, and traders took their short term profits on the long positions they bought last week. Happens all the time.
Something that was discussed on this site recently was how bear markets tend to average over 30% declines before they are over. Since we are only down about 20% right now, we obviously could go lower over the next couple of months. Don't look for any improvement in existing home sales next month either. In fact, in my area, the July sales are trailing same number of days June sales by about 15% right now.
102 points
lyonden answered one year ago …
With gas that Americans have saved by driving smarter being gobbled up by China and India, I don't see petrol costs dropping far or for long. With layoffs the car de jour and home values not bouncing at all, even with tax payers mandated assistance, and home equity loans becoming like hens teeth t the average home owner, I don't see that market coughing up much cashola for investors to tap in to. Nothing goes down forever but even with this recent 400 point comeback, I see the players testing the 11,000 mark again. If it holds, that makes a nice new bottom.
Cheers!
1902 points
alanj answered one year ago …
We are in a long term down trend. However, right now we are in an intermediate up trend. Or if you wish "a pullback". But overall the market should break below 11,000 by the end of the year.
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