After a 7 day losing streak in the Nasdaq in which we've lost over 200 points I expect a sharp bounce either today or tomorrow. There is a gap that needs to be filled at the 2600 level which is a 100 points higher and we may just get there. Its times like this when people are about ready to throw in the towel that sharp rallied occur. And we are extremely oversold on an intermediate term basis. Add that to CES in Vegas which tends to have a positive effect on tech and I would say a bounce in the Nasdaq is forthcoming.
I don't think Howard Schultz returning to the helm of Starbucks is going to help the company anytime soon. Higher commodity costs and increased competition from Dunkin Donuts and especially McDonalds, is killing this coffee shop chain. People have come to their senses and decided paying $4 for a cup coffee is absurd. Disclosure: I don't drink coffee. Hate the stuff.
Jimmy Cayne has come to his senses and decided to step down as CEO of Bear Stearns. Or rather he was 'politely' asked to vacate the chair. Now he can go focus on golf and bridge which he is more suited for rather than making foolish bets with 'real' money.
I sold off my QID position yesterday and went long QLD . Still have SRS SKF. I'm betting on a bounce here before more bloodshed. The Dow could be putting in a double bottom though having tested Novembers lows. Markets don't go down in a straight line though its feels like it sometimes. I love the volatility nonetheless.
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