News / US Equities
There’s just no end in sight to the DJIA’s fall. It has even accelerated further to breach 11,000.
Driven by bad economic results and more problems brought about by the pressure on the price of crude oil, the DJIA has apparently seen it’s good days pass by in a huff. Gone are the days when you can still confidently call for a long position on any stock. These days, it’s the turn of big institutions like Goldman Sachs to call on its clients to short sell other companies in its sector like Citigroup.
The financial sector looks terrible, but so do the airline industry and the transportation sector. Probably the only sector that you can call attractive now would be the energy sector and the mining sector.
As I’ve read in another column, the Americans are going to stay complacent with the usual drops of 100 to 200 points in a day. But they would like to see the market turn extremely bearish and absorb a massive 500-point drop to shock people to buy a lot.
I don’t know if that is what it really is needed to kick-start a bull run. But it is safe to say that the DJIA is trending lower right now. Once it breaks the psychological support of 11,000, the next levels that we should take a look at should be between 10,500 and 10,700.
If a drop happens, we should expect all other markets around the world to follow suit. 
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