MARCH 10, 2008: More bank downgrades, $108 dollar a barrel oil, and a major sex scandal involving NY Governor Eliot Spitzer helped send stocks lower again today. The Nasdaq fell another 2% closing near the lows of the day and at a new bear market low. The financial sector led the way down.
Solar stocks were weak today with leader First Solar taking a 10% hit in heavy volume and losing it’s 50-day line. Fertilizers were also hit hard on global recession worries and leader Potash Sask. swooned 8% in heavy trade. Steel producer SID fell 4%. Oil/gas stocks were strong today in the face of $108 oil.
Here are the top 10 leading groups: Fertilizers, Gold/Silver, Oil/Gas Producers, Farm Machinery, Ores, Steel, Solar Energy, Agricultural Ops, Oil/Gas Drillers, and Mining Machinery.
The stock market indexes have tested their down trending 50-day moving averages from an ‘overbought’ position and failed. IBD has now switched from ‘Rally Under Pressure’ to ‘Market in Correction.’ Gold, silver, grains, and oil are all moving higher in very definite up trends as investors move out of US dollar and into ‘hard’ assets. We may be witnessing a ‘disconnect’ between commodities and stocks.
It’s best to stay on the sidelines in stock markets like this and not get sucked into ‘leaderless’ bear market rallies. Patience, Grasshopper! More at www.goldenticker.com
Tags: spitzer sex scandal
