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October 5, 2005

Remember...if their lips are moving... Wed., Oct. 5, 2005, 4:11 PM

To paraphrase the late Jim McKay and his long running ABC show: "Travelling the world to bring you a variety of financial advisors, the thrill of victory and the agony of defeat - this is CNBC's Wide World of Entertainment.

I'm real happy my web readership stats are soaring " up +100 pct over July and +50 pct over August, and growing by the day because my loyal readers are passing the word.

At least some traders are avoiding this agony of defeat".

You must know it's been a tough day when all but TWO of your TOP TEN sector-industry list are DOWN on the day. You won't find that happens too often.

And as for the two that barely made it into positive territory today -- Restaurants and Airlines -- it's really a case of feeling better when you stop banging your head against the wall.

With cheaper fuel costs, you'll posibly get out a little more -- if you can find people whose company you might enjoy. HINT: Don't go tonight.


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You can take it from me that your time will now be wasted by all those THs telling you they saw this collapse coming, weeks ago. But, truly, you know by now who is the real Wizard.

You remember what I have said in the past; when you see their lips moving just assume they're lying to you. And, picture them in clown suits with flashing red balls on their noses.

It helps take the edge off the pain, if for some reason you decided to follow their advice.

And again tonight on the other side of the world, there were millions of traders who were sleeping with one eye on the equity market in NYC. That means of course, there will be a reciprocating action tonight.

If this situation keeps up, there will be a lot of bloodshot eyes in the world, including mine. Tonight, I will try to figure this out and report early tomorrow.

Posted by Posted by Bill Cara on October 5, 2005 04:14:02 PM | Category: Cara Today in the Market

Discourse

My big question mark is why the financials are holding up? I can see that energy was due for a correction, but higher inflation should signal higher interest rates and I would expect a major decline in the financials which hasn't seemed to materialize.

-Ben Green

Posted by: Soulek1 [TypeKey Profile Page] at October 5, 2005 5:00 PM [link]

Bill,
My single favorite indicator is combined Nasdaq/NYSE net breadth ($ADV + $ADVQ - $DECL -$DECLQ). On a bad day, the indicator usually gets below -2000. Today it closed at -3964, the worst I have seen since I began tracking it several months ago. The ugliness was widespread, and many retail traders are going to see a sea of red when they pull up their portfolios tonight.

Posted by: josh [TypeKey Profile Page] at October 5, 2005 5:30 PM [link]