Ericsson cuts 5,000 jobs and posts 31 percent drop in 4Q profit. TOO MUCH OF THIS and the stock market is now reacting to the bad news, and the sellers were OUT IN FORCE TUESDAY with another 90% down volume day! The buying control program L had issued end of last year is now reversed and a fully defensive posture is now in vogue (for me when wasn't it?)
On a day where HOPS was the key topic and CHANGE is for the good, to see a market in freefall was disarming. It is typical to get a few days respite after a 90% down day, after which IF IT COMES the lows are to be challenged.
Transports Nov low of 2,988 has been broken. SPX NOV low (daily) is 752.44 and nothing between here and DOW 7552.29 low.
http://stockcharts.com/h-sc/ui?s=UYG&p=D&yr=0&mn=6&dy=0&id=p62222868433 UYG was off near 30% from already putrid level to a NEW LOW!!! $2.73
MY call to watch VIX support near 40 called THE TOP of this fetid rally, and my propritary indicator has turned DOWN once again and made a NEW DAILY LOW, it is clear to me now I cannot can THE BOTTOM with this until its supporting MOMO cross up, not just by sheer new low readings alone.
HNI IMHO would be early benefactor of renewed economic strength appears to have renewed it's downtrend. It has in the past front run moves up and down by a year or more.
GE a new low for move, there is a HEAVY SHORT position there. INT rates and OIL spiked Tues.
GOV is buyer of last resort of almost everything.....to see UYG break down like this is to see the banking system barely on life support......we can all pray now.
D
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