S&P 1125 to the Point as Bloodbath Continues

Not much to say here – it’s a bloodbath out there.  When S&P 1175ish was broken I said I did not really see any support until 1125.  I thought there would be some sort of bounce between here and ‘there’, before potentially finding our way down to 1125 however.  That did not happen – it has been a straight elevator down.  ‘There’ is already here….

The way we are finishing is of course ugly and there won’t be much to take home from it.  If it is just the debt downgrade we are reacting to, I am surprised for this sort of a reaction but I think its more of a recession call.  One that the bond market has been signaling for months, but that the equity market has been ignoring, just as in latter 2007 to mid 2008.

My call over the past half year for QE3 by ‘this winter’ might be proven to be conservative.  The desperados at Jackson Hole may be making a repeat performance in a few weeks.  Heck, they might show up tomorrow at the Fed announcement.  Expect massive volatility as speculators demand a white knight on horse to show up tomorrow afternoon.

About Mark Hanna 542 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

Follow Mark on Twitter @fundmyfund.

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