The last bastion of strength, technology, was taken to the woodshed as the NASDAQ lost 6.5% last week. Selling was initiated when Cisco Systems (CSCO) reported inline revenue and earnings, but weakening sales to US financial institutions. Cisco’s strength in its other end markets was ignored as fear that subprime slime has infected the non-financials made the headlines. Before Cisco’s report, technology was hoped to be immune to the slime. Did the market over react? Probably, but fear often trumps fundamentals.
The DOW joined the pity party posting its worst 3-day loss in 5 years. It is off nearly 8% from its record high set on October 9. The S&P 500 was down 3.7% for the week.
Commodities fared better. However, oil’s quest for a $100 per barrel was stalled on Wednesday after the government reported a smaller than expected decline in crude inventories. It closed the week over $96 up 0.4%.
Gold was the star of the week as Gold Futures closed at $834.70 per ounce up 12.3%. Interestingly gold stock investors didn’t benefit as the gold mining index XAU was down 0.5% for the week.
The TTaMG portfolios followed the market lower:
- Fab 4 -3.5%
- BBO -2.4%
- BRIC -7.8%
- Real Money -3.5%
- TBS -7.2%
- MDs Ag Play -4.2%
Become a Friend of TTaMG and make some $ trading stocks in the hottest sectors in the market.