TSG – Dow Head & Shoulders Spells Trouble

Dear Trader,

TSG Stock Market Letter
Week Ending June 20, 2008
Topics Discussed This Week:

* Stocks tumble…

* As the leaders register gains

* Housing starts and permits still falling

* Dow head & shoulders trouble

* Leading industries – still no sign of recovery

* Technicals rule but do fundamentals matter anymore?

Blue … Dear Trader,

TSG Stock Market Letter
Week Ending June 20, 2008
Topics Discussed This Week:

* Stocks tumble…

* As the leaders register gains

* Housing starts and permits still falling

* Dow head & shoulders trouble

* Leading industries – still no sign of recovery

* Technicals rule but do fundamentals matter anymore?

Blue chip stocks fell every day but one this week as stubbornly
high crude prices helped pull the Dow below 12,000 for its first
weekly close below that psychologically important level since
March 14. The good news is that after putting in a high north of
$140/bbl on Monday crude had slipped to below $135 by Friday.
But there was more bad news for banks as the credit crisis
continued to grow long and increasingly sticky legs. While large
international banks have the ability to better weather the storm,
regional banks have more finite resources. As home prices
continue to fall and mortgage defaults rise, it is only a matter
of time before we start to see bankruptcies.

So what are the leading industries and Dow telling us about what
to expect ahead?

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To read this week’s STOCK letter, please go to
http://tradesystemguru.com/content/blogcategory/34/68/
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