Take a look at the chart...You will see AIG bouncing off of the $50 area several times which represented an area of support..AIG has now broken through that support, retested it, and began heading lower...Classic sign that a major top is in place.
Again folks, these relief rallies make a good time to get out while you can...
The fed injecting 200 billion is a sign that there are serious troubles...But from what I understand, the feds tools can't fix the derivative problem...
Again....This is a serious breakdown of technicals with AIG..They aren't going to highlight this for you on CNBC.
It's just basic charting here folks..And this reflects the fundamental problem of derivative exposure...The bond insurers are in big trouble.
>>Again....This is a serious breakdown of technicals with AIG..They aren't going to highlight this for you on CNBC.
It's just basic charting here folks..<<
Nice try dork, the truth is, this is the back end of a long term (10 year) chart pattern. Unlike you, I'm a true chartist and have been aware of this formation for sometime.
I don't pretend to make predictions like dopes like you, but for those seeking to have a base line from which to judge this move, this formation completes itself at around the $35's (I wouldn't get wrapped around whether it completes at either the 36's or the 35's on a closing basis.)
I don't pretend to know whether it goes lower than that, all I know is the completion of such formations is a fact of life in the market and that "so far" this is NOT a technical break down as you suggest.
I would suggest that (IF) the price breaks below $35 (on a closing basis), it would be reason for concern, but we're not there yet. Those of you who twist in the wind daily and attempt to predict intra-day moves are not only wasting your time, you're idiots to boot.
This market will remain under pressure (on average) for probably 2 years, during that period there will be many corrections and bear market rallies. The point is, we're in a bear market and will remain in one until the credit and housing bubble is resolved AND the dollar finally begins to strengthen. In the mean time, we're not going to see hew highs in any of the averages until at least 2011 and maybe not until 2012.