Stocks broke to new lows this week and despite a big rally on Friday, the losses on the week were severe. Citigroup continued its death spiral, announcing 52,000 layoffs while management failed to forgo bonuses and the stock price cratered. The automakers were unable to convince Congress they had any clue how to turn their businesses around so they got back in their private jets and regally returned to Detroit. Forebodings of problems in commercial real estate and commercial loans caused more fears of write-downs on the way. The Fed released its minutes from the last FOMC meeting and the growth projections for coming quarters were much reduced. This further alarmed investors. Housing numbers were bad, as usual, and initial jobless claims were elevated. Was it any wonder stocks fell?
Against this uncertain and depressing backdrop, we see the number of signals in either direction dwindling still further. Here is the breakdown for this week:
- based on daily data, we have 2 BUY signals and 15 SELL signals
- based on weekly data, we have 9 BUY signals and 15 SELL signals