BREAKING NEWS: The bailout plan has been rejected by the House. And the next question: what now? The Dow slid almost 6% on the news this morning.
This weekend I did nothing. Absolutely nothing. I have to do nothing long enough that I get bored of doing nothing and it motivates me to do something. That’s why Monday was invented. So that after doing nothing all Sunday I want to do something Monday. This is also why summer was invented. I had my last first day of school on Friday. I’ve never been more miserable. After I hiked to my inconveniently located class, I sat in an non air conditioned room with 60 other people. I realize a lot of students waste professor’s time with rhetorical and asinine questions, but what about my professor wasting my time? When do I get to call those shots? I am, after all, paying you for my education and I expect you not to waste my time just as much as you expect me not to waste yours. All this zealous must be the excitement I am harboring for a new school year. Righttttttt. Or something like that.
If you’re worried about consumer confidence, stay off the internet. Don’t turn on your t.v., don’t read the newspaper and certainly don’t look into the eyes of Paulson on Bernanke. Dogs can smell fear; I can see it in the eyes of our most noted economic leaders through a glass screen in my living room. There are losers and there are winners in the bailout scheme, but most of Main Street knows the bandages won’t be big enough to cover there wounds too. If it’s a game of confidence now, panicking is probably the worst option.
Upon hearing this news of the bailout being rejected, I checked the overall sentiment meter on the front page of PredictWallStreet. Sentiment for DJIA has fallen into the extremely bearish zone. In fact, it looks like its about to fall off the meter. The NASDAQ and SP500 are holding on in bullish territory. I would imagine that such immense news would have a more rippling effect and that while the DJIA is most bearish, other indices will follow shortly. Since these are refreshed every fifteen minutes, I’m gonna check back soon to see there status.
PredictWallStreet’s forecasts this morning include a few headliners, such as Citigroup, Wachovia, Apple and Bank of America. This morning Wachovia sold its operations to Citigroup for $2.1 billion. Citigroup (C) is forecasted to close down today from its opening price as well as Wachovia. One week sentiment for Citigroup is in the bullish zone, although looking at 1 to 3 month sentiment shows it has started to slightly fall. Wachovia bank (WB), who has almost 500 predictions this morning, was also bullish, but has become more bearish most likely due to its insolvency.
Analysts also downgraded Apple this week, helping it hit its 52-week low. PredictWallStreet forecasts Apple (APPL) to actually close up from its closing price. With the recent news of the denied bailout, and Wall Street in a frenzy, I may actually have to disagree with this forecast. Sentiment for Apple is becoming more bearish, and the price has dropped almost 17% this morning. I’m not exactly sure how it could recover that much in the wake of recent events to close above its current price of 106.69 today. And speaking of all time lows, Google (GOOG) fell below $400.00 for the first time in 2 years this morning. Yikes bikes!
Bank of America (BAC), Goldman Sachs (GS) and Morgan Stanley (MS) are also forecasted to close down today. I’m gonna have to agree that these are pretty solid expectations. I would be curious to see what exactly is up, if anything, in today’s market.
The uncertainty and instability of our economy is crushing. As I press refresh, I’m literally watching NASDAQ sentiment slide down the meter and fade into the red. It’s a weird feeling watching history be made right in front of your eyes.
Stumble It!
