Terrific chart from Jim Bianco, showing the extent of drawdowns, since this rally began in March 2009:
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click for larger chart
Chart courtesy of Bianco Research
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See also Stocks Fall Into Correction
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
"Dollar depreciation leads to higher inflation and ultimately forces foreign creditors to question their rationale and indeed their sanity for continuing purchases of U.S. Treasuries." -Bill Gross
Signs continue that European markets are getting tired. The Spanish and Italian stock markets, big beneficiaries of the sharp decline in their bond yields over the past few months are falling to the lowest since Feb 1. The European bank index is at a 1 1/2 week low after earnings reports from Commerzbank and Credit Ag (RBS bouncing although reporting weaker than expected earnings) were disappointing. This market action is in spite of the German IFO business confidence figure which rose to a 7 month high coming in a touch above expectations and Italian consumer confidence which bounced more than...
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May 22nd, 2010 at 11:09 am
OT, Reversal time for government stimuli.
Prepare for age of austerity, says Laws
The Liberal Democrat minister in charge of Britain’s biggest postwar spending squeeze has said he is ready to make “aggressive” cuts to bring down the £163bn budget deficit, admitting the choice lies between “the unpalatable and the disastrous”.
David Laws, Treasury chief secretary, will on Monday set out £6bn of savings this year, but told the Financial Times that this was just a start. “We are moving from an age of plenty to an age of austerity in the public finances,” he said.
May 22nd, 2010 at 11:12 am
Is it time yet?
May 22nd, 2010 at 11:25 am
BO has ordered GS and Co. to phase out the PPT operation; which has proved harder than expected. They’ve changed their plans for a more orderly withdrawal (after the Thursday fall which required emergency intervention) so expect a slower descent than first planned.
May 22nd, 2010 at 11:35 am
So, do you foresee “back up in the short term and then an even bigger drawdown”?
Will we see Dow 6000 again, BR? Yeah, yeah, “forecasting is folly”. But, it’s fun! ;-)
May 22nd, 2010 at 12:03 pm
Yeah, yeah…..
We wouldn’t have these gyrations if so many weren’t primed to cut and run at the first hint *they* may be greater fool. And of course, that *always* feed the parasites on Wall Street.
Then again, the only people who give a shit about the stock price are traders or those who might be forced to sell. *Owners* care about dividends….and keeping management from dissipating those dividends along with their equity.
Can you not see that 90% of Wall Street = bunch of kids arguing over a video game match? We could only hope they would get real jobs…….
May 22nd, 2010 at 12:08 pm
Before it all collapses, it’s a great day for gardening, mowing, or being out in nature (take a bike hike)!
Enjoy your weekend everyone!
May 22nd, 2010 at 1:03 pm
@mathman: Took a great hike Thursday, working in flower and veggie garden today. It’s good for the soul.
May 22nd, 2010 at 8:47 pm
Trading analysis for next week! Quiet detailed and comprehensive
Enjoy!
http://bostonwealth.blogspot.com/2010/05/morties-weekend-analysis-22may2010.html
May 22nd, 2010 at 11:00 pm
Who’s got the technical stuff on this? shouldn’t we expect to see a double top before a significant plunge?
May 22nd, 2010 at 11:26 pm
“Who’s got the technical stuff on this?”
Here’s a clue about all those technical charts: they draw the straight lines AFTER all the jaggy ones have already happened.
May 23rd, 2010 at 1:32 am
Great chart!
May 23rd, 2010 at 7:08 am
[...] The sharpest pullback to-date for this bull market. (Big Picture) [...]
May 23rd, 2010 at 9:27 am
Couldn’t load the charts, sadly. The blog article about the new port doing the run around to the straits of Hormuz was the first time I heard about it. I will be keeping my eye open for its completion.
May 28th, 2010 at 5:10 pm
[...] The sharpest pullback to-date for this bull market. (Big Picture) [...]