Nasdaq Off 4.5% for the Week

FEBRUARY 8, 2008: Stocks were mixed today and ended the week down as the ‘bear’ continues to slowly maul the ‘bulls.’ For the week the Nasdaq was off 4.5% and the S&P 500 lost 4.6% wiping out last weeks gains. Energy stocks did well as oil shot up $4. Mining and steel stocks also did well. MTL was up 7%. Transports, financials, and retail stocks were weak. The Nasdaq is now 19.5% off it’s October highs. Stimulus packages, multiple rate cuts, bail-outs, etc. may have brought us a ‘counter-trend’ rally but have failed to change the direction of the markets, which is decidedly down. Counter-trend rallies during corrections are by no means a signal to jump back in the markets. Bear market rallies can be sharp to the upside and come back down even faster. It’s best to wait for a ‘follow-through’ day before committing money to the long side of stocks. Don’t forget that the banking system is in serious trouble, the housing sector is in ‘melt-down’ mode and the consumer feeling the pinch of higher inflation and less access to credit. More info at http://www.goldenticker.com  The E-Trade baby – evidence that the markets can make you puke lately.