Worst Week for Wall Street 2011. Previously It Was A Super Good Week

Posted by Kris | Saturday, September 24, 2011 | | 0 comments »

Greece turmoil, Fed's decision to sell short term debt and buy long term debt to lower bond yield rates aka manipulate the interest rates don't really spur the market to go up. This week was the worst week for DOW JONES, the week before the DJIA chalked up impressive gains that easily killed a lot of bears. (after news that there is hope for Greece. Moral of the story; as always politician are indecisive and this proved fatal for the stock market).

The S&P 500 dropped 6.5 percent to 1,136.43 this week, the most since the period that ended Aug. 5. The index retreated after posting the third-biggest weekly gain since 2009. The Dow dropped 737.61 points, or 6.4 percent, to 10,771.48.

The unexpected strength was from NASDAQ which manage to fend off further declines. At one time one tech stock manage only to decline ~1% while all the major 3 indexes sustain ~4%++ declines.

Meanwhile our KLCI dropped pass the 1,400 support to end up 1,365. Major banks like CIMB, Maybank suffered tremendously because of the sentiment.

The general believe that gold & silver prices are INVERSELY related to the stock market is very very wrong. GOLD & SILVER tank big time. I think there is more than one occasion that this behavior occurs. So, don't rush in to buy in GOLD/SILVER just because the stock market tanks.

Oh..USD is on the rise while the Ringgit & Aussie dollar get hammered.

Here are the charts. More blood bath to come.