Stocks had another bad day. Dow lost 246, decliners continue to beat advancers 2-1 while NAZ dropped 49. The breakout for new highs & lows is:
new highs 41
new lows 216
New lows include: AXP, M, LTD, XRX, ANN, PBI, LIZ & HSY.
Even the recovery, there remain a lot of new lows
In the Dow, American Express (AXP) & McDonalds (MCD) accounted for 1/3 of the decline. Banks held fairly well with Bank of America (BAC) one of the few posting a loss, down 80¢. REITs rebounded slightly, junk bond funds & MLPs pulled back. Even though my focus is on div companies on the Big Board, techs have been getting hit hard in the last 2 weeks. Worries about a recession are affecting them.
According to RBC Cash Index, consumer confidence fell to 56.3 in early January, which compares with 65.9 in December, the worst since the index began in 2002. There are a lot of indicators pointing to a recession have arrived already. Sleep well over the weekend, then research stocks that are pulling back to attractive buying points.
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