the next dow benchmark

[wimpy77]

from what i have read and watched today the consensus is the market will pull back especially concerning financials. if it does start retracing its gains how low? 300 or 400?

 

[DavidS]

from what i have read and watched today the consensus is the market will pull back especially concerning financials. if it does start retracing its gains how low? 300 or 400?

We had a rally... a big rally. Too big of a rally. Too quick, too fast. There isn't a plethora of good news out there. I say we go back down to 7000 and float in between 7000 and 7500 for a couple of weeks or so. If unemployment starts to hit a wall and doesn't grow, then we could see a rally.

 

[wimpy77]

so you dont think sub 7000 again

 

[Paulie]

I definitely see it going under 7000. I see no reason why there would be support at that level right now. This is a bear market rally. There's been almost zero news that indicates we're coming out of the recession. I actually have to agree with Dave, we have no reason to be excited until we start seeing job losses at least leveling off.

If you really want to put a substantial amount of money into equities, pick companies with healthy balance sheets that are still generating revenue during the recession. If you liked a healthy company at $30, why wouldn't you still like them at $20, or even $10? If they can weather the recession, they're a cash cow long term.