Martin Weiss and Mike Larson examine the U.S. stock markets that are breaking down and signaling the beginning of a recession. Dr. Weiss & Mr. Larson take a closer look at some U.S. stocks that are continuing to sink lower. One by one, sector by sector, the U.S. stock markets are breaking down below critical support levels on the charts, plunging in a virtual free-fall, and signaling the beginning of an imminent, unavoidable, potentially deep recession in America.
Just in the last few days, the Dow Jones Transportation Average broke down below its low made in August, the last time the market was spooked by fears of a credit crunch.
And just Monday, November 19, the Transports confirmed their downward path with a second breakdown, this time below the 4,500 level, crossing into new low territory for the year.
The message: Don't be surprised to see the Dow Jones Industrial Average do precisely the same thing. Indeed, some bellwether Dow industrials have already broken down and are now in a free fall.
Consider General Motors, for instance. Over the past 14 months, GM touched down to the $29 level on five separate occasions. And each time, it has bounced back, thanks to new hopes and new promises from the auto industry, the Fed and even from auto workers. But it has broken down below the critical $29 level, another signal that the Dow Jones Industrials is headed for a similar fate.
Also take a look at Citigroup; its shares have crashed just in the last few days, plunging through their critical $43 level, and now also in a free fall.
"Even more dramatic is the crash in Fannie Mae's shares, which is at the heart of the credit crunch that's sinking our economy. Fannie Mae rode the crest of the housing boom, surging from under $20 per share in the mid-1990s to a peak of nearly $90 per share in 2000. And now, it has broken down first through its 2000 lows, and now through its low made just last year," Dr. Weiss states.
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About Martin Weiss & Mike Larson & Money And Markets
Martin D. Weiss, Ph.D., founder and president of Weiss Research, Inc. and a leading advocate for investor safety, is a nationally recognized expert on domestic and international financial markets. With more than 35 years of experience, including many years in Latin America and Asia, Dr. Weiss has helped empower millions of investors to make better financial decisions through his monthly Safe Money Report and daily Money and Markets.
Dr. Weiss' keen understanding of foreign markets and the global economy has earned him a reputation for thoughtful, in-depth analysis that investors can rely upon to make informed financial decisions. Regularly called upon by the media for his independent investing guidance, he has been featured in publications nationwide, including The Wall Street Journal, The New York Times, Chicago Tribune, Investor's Business Daily, and Forbes and has also appeared on CNN and CNBC.
Dr. Weiss holds a bachelor's degree from New York University, a Ph.D. from Columbia University and is fluent in eight European and Asian languages.
Mike Larson joined the company in 2001, and has more than 10 years of experience researching and writing about personal finance, investing, and the housing and mortgage industry. In 2003, Mr. Larson was named associate editor of the company's monthly Safe Money Report. In this role, he is responsible for writing and editing as well as analyzing trading opportunities for clients. Mr. Larson is also a regular contributor to the company's daily e-letter, Money and Markets.
Before joining Weiss Research, Mr. Larson was a personal finance reporter for Bankrate.com, where he wrote extensively on mortgage lending, banking, residential real estate, and Federal Reserve Board policy. His responsibilities included analyzing economic data and interest rate trends for a weekly column and developing rate forecasts for a regular index feature.
Previously, Mr. Larson held positions at Bloomberg News, the Boston Herald, and the Daily Free Press.
Mr. Larson holds B.A. and B.S. degrees from Boston University.
Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.