Friday, October 03, 2008

NEEDLE AND THE DAMAGE DONE

SHOWN IS "BROKEBACK MARKET" click to enlarge It is never good to break a previous years low, the chart is self explanatory with addt'l indexes added above main DOW CHART. This has potential IMHO to take us back to lower lines of support and maybe back to DOW 9,000 or even 2003 or 2002 lows because what got us here is SO much worse than 2000! And so far the elixir that worked before is not working now.
Right after vote for "rescue" bill the market began to TANK, it had been UP more than 250 pts earlier! But selling was not "intense" as it may have looked.


I am scratching my head as one of my TA Indiciators is VERY CLOSE to levels seen at 2002 Bear Bottom, but even if it was, was it not much more logical to get "2nd mouse" and BUY with both hands 2003 lows? IMHO yes....IMPORTANT LOWS USUALLY GET TESTED.


Today we made a new low in the Dow. Could mkt go up MONDAY>? sure and it could crash too.
Business hasnt seized up, in a world where Toyota sales drop 30% its a whole new ball game!
>>>Toyota announced Friday that it will begin offering 0% financing for 11 models this month, some for up to 60 months. And it's not just on the company's big trucks and SUVs like the 4Runner, Tacoma and Tundra. The popular and fuel-efficient Camry and Corolla are being cleared out on the cheap, too.
"Sales coming in at the September rate would have been worse than stimulating them," says Burnham Securities auto analyst David Healey. Toyota suffered a 32% drop in vehicle sales last month from September 2007, similar to the declines at Chrysler, Ford and Nissan. Honda, with a 24% drop, fared just a little better. GM managed to limit its sales decline to 16%, though it needed an average incentive of almost $4,000 per vehicle to do it.
Unlike the domestic Big Three, Toyota at least has the balance sheet to absorb a clearance sale with little trouble. The company made $17 billion during its latest fiscal year, which ended March 30, and sits on over $17 billion in cash.
Still, it's a landmark move for Toyota, which hasn't offered these kinds of incentives since a limited flirtation with 0% financing shortly after the Sept. 11, 2001, terrorist attacks, according to Edmunds.com analyst Jessica Caldwell.<<<<<
You all see the carnage, so I wont keep going, only to say....I hope I helped a few of you...maybe more tomorrow after I read L's weekend.
D

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