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DJIA drops a record 400 points on the week
Monday could be another very rough day for Wall Street. As we go to press at 10:30 p.m. EST Sunday 07/26, the Nikkei index in Tokyo is down about 1.75%.
The DJIA's 400 point drop last week was its largest ever in terms of sheer points, but a non-event in terms of percent, just 4.2. The DJIA was so weak last week it could only a muster a pathetic 4 point gain on Friday, after dropping 404 points Monday through Thursday.
Still, over $1,000,000,000,000 (that's one trillion, with a "t") in total US market capitalization evaporated last week. Louis Rukeyser, who hasn't made quite that much from his 25 year reign on taxpayer-subsidized PBS, blamed it on the "Rukeyser Vacation Jinx." Seems every time Louie takes a week off, the market tanks. Seems to be about as reliable as the Super Bowl Indicator.
The Russell 2000 index, already down 10.9% from its early May peak, appears ready to begin a massive third wave to the downside. Look out beloooooowwww!!
Japan's AAA bond ratings are in jeopardy of being downgraded by Moody's. If that happens, the depression in Asia will quickly accelerate.
President Clinton will have to put on his best Slick Willie personae to handle Ken Starr's subpoena request. Will he testify? He's damned either way. He can't refuse; that would be political suicide. His only out is to hope his legion of lawyers can find a way for Starr to get the information he has sought so long without embarrassing Bill, Hillary, Al Gore, and the rest of the Democrats. Yet as long as "the economy's good," no one will care. By the time the new Great Bear Market is evident to the multitudes, a few weeks before the November elections, they will care.
Grizzly
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