Market Falls - Selling Broad Based

The market managed to close off its lows today but not by much. The DOW closed down 125 point to 8474 while the Nasdaq and S&P both gave up a little over 2%.

Surprised? Not if you’re a 2oversold.com reader. As regular readers of our site you know that we have a projection of DOW 6500 before the markets can hope to find some sustainable support. And while this may or may not come to pass to date we have seen no news or pick up in the economy that would give any indication that the market has any support at these levels.

Today’s selling was broad based with most sectors off and again this is no surprise. We have been blogging for months now that it is our opinion that the individual investor can no longer play sectors as they once did but would do better to look for individual companies that are oversold and provide value to the consumer.

So will the market continue to fall? You betcha. The trend continues to be down and DOW 14000 is only a memory. We are in a completely different financial world now and one in which we do not believe many of the old rules apply. The story today and for the foreseeable future is the economy.

For sure there are many great minds working hard to get the world economies back to work and the individual consumer back to spending. And in time this will start being reflected in the markets but this will take months just to halt the unemployment numbers from rising and without jobs folks, the consumer can not spend. I’m not a smart man but this is not rocket science.

A recession does not mean there will not be companies that prosper. There will be and at 2oversold.com we will continue to blog about those we find that we believe to be “companies worth a look”.

2oversold.com is a blog for the individual consumer and private investor. We are not experts in the markets nor do we make any recommendations of any company. The companies we blog about are discussed for the purposes of this blog only and this should not be considered as investment advice.