Market Commentary from June 27th, 2008

The Dow lost almost 500 points in the last two days.  Longer term, the stock market has been down sharply since May 2; in fact, it has been down five of
the last six weeks. Several commentators note that the Dow experienced its worst June since 1930.
Moreover, with this decline, it has also given back all of the gains it made since September, 2006.

080627 Dow Low Divergence 600p

Also worth noting is that the Dow just made new lows for the year, entering “Bear Territory” by sinking more than 20% from its October peak.  However the MACD’s downward momentum did not make new lows, even while the index price plummeted. 

Perhaps more important, though, is that the Index broke below its 28-Year Up-Trend line.

Dow 28 Year Uptrend 630p

Also, Bespoke had an interesting chart comparing returns of various international indices.  Here it is:

0806 Global Return Comparison from Bespoke

Finally, here are a few of the posts I found interesting this week:

And a little bit extra …

  • Trading Desks Turn to Video Game Technology to Speed Analytics. (Wall Street & Technology)
  • Your Money and Your Brain (Phil’s Favorites)
  • The Petabyte Age: Because More Isn’t Just More — More Is Different. (Wired)
  • The New Name Game: Internet Naming Rules About to Change. (CNN)
  • Will Brain Downloads will make lessons pointless? (Telegraph)
  • The Philosophy of George Carlin (Financial Philosopher)
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