Stocks continued to sink on little news and a day after selling off after economic reports on jobs and manufacturing confirmed worries the economy is slowing. On a Fundamental standpoint we are slightly overvalued however I do not see signs for a double dip unless fiscal policies change from the Treasury Dept, Fed, or Government to end the Keynesian economics. In news that seemed to confirm the weakness of the job market, Fidelity Investments released a survey which showed that a record number of U.S. workers are tapping into their retirement accounts to make it through the economic downturn.
The S&P and Nasdaq were lower. The key S&P 500 sectors were all lower, led by industrials, energy and telecom. Declines in the previous session pushed both the Dow Jones Industrial Average and the S&P 500 into negative territory for the week, although the Nasdaq is still clinging to a marginal gain.
European shares edged lower with doubts over the strength of the recovery dampening investor sentiment. Asian indexes closed mostly in the red with Japan’s Nikkei seeing sharp declines.
WSG’s bet that markets were to head lower. We are in the beginiing of a second wave down trend. As it stands our August 109 Put profit which expires today are up 256%. We will sell this and forward the proceeds towards the September 18th Puts currently priced @ $3.25.
SOURCE: WALL STREET GRAND JOURNAL
SOURCE: WALL STREET GRAND JOURNAL
