2007 Feb 27 - Tue

2007/02/27 Market Notes

Well that was an interesting day. The Dow bottomed out around 537 and rebounded up to being down 400 for the day. The one point I wanted to remind myself of was that the Dow futures were noticeably down in early morning trading, before the bell. Even before that, there were notes about early morning Chinese sell-offs happening. It is said that during yesterday's trading, "China's Shanghai Composite reversed early losses to end at a record in its first day after Lunar New Year celebrations".

Today's "declines came on concerns that the government may introduce additional macro-economic tightening measures to cool speculative activity".

It has been noted that this day approached the one day loss of September 17, 2001.

The market psychologists would probably suggest a rebound slightly for tomorrow as the professionals buy back. I can't put a date on it, but a the beginning of last year, oils caused a big dip, but the original market highs were re-attained within a week or so. Come to think of it, it may have been the year before where we had a dip and a rebound.

It is interesting to note that John Mauldin's Weekly E-Letter on Saturday talked about the 51.9% Recession based upon an inverted yield curve.

So, we have a toss up, are the pro's going to buy back in, or is retail going to bring it down more for the next couple of days.