Tuesday, September 1, 2009

No good reason for this selloff today



The Dow is off nearly 200 points as of this writing and from where I sit there is no good reason for this selloff. Blame it on a weak longs and perhaps some "catch up" by U.S. market averages to what has been happening to China's stock market recently. (Down 26% from its highs.)

However, fundamental economic news appears to be getting better. Economist Mark Zandi, who called the dowturn two years ago and who stayed bearish throughout the contraction, said that the ISM numbers released today were the "clearest sign" that the recession is over.

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