Dow Jones plunged over 190 points after the assassination of Pakistani opposition leader Benazir Bhutto together with Commerce Department’s durable goods orders raised concerns about the U.S. economy. Bhutto’s assassination in Rawalpindi raised the possibility of increasing political unrest in Pakistan, a nation which is an ally of U.S. in the fight against terrorism. What makes the situation worse is the fact that Pakistan possesses an arsenal of nuclear weapons and if the post-assassination situations spin out of control, it could spells catastrophic.
Thursday’s drop was further exaggerated by the fact that many traders were on vacation, making volume light and stock prices more volatile. Meanwhile Goldman Sachs (NYSE: GS, stock) said Citigroup Inc (NYSE: C, stock) may be forced to write off 70 percent more than the $8 billion to $11 billion Citi forecast in early November. Citi could also cut its dividend, and might need to raise $5 billion to $10 billion more cash.
For Apple Inc.’s (Nasdaq: AAPL, stock) fans, it was a short cheers when the stock price charged above $200 a share and hit as high as $202.96 before selling emerged and forced the stock to consolidate below $200 at $198.57. As I mentioned when I locked my profit during my Silly Mistakes, Making Money and Christmas Eve’s Joy, Apple would be testing the $200 level but not before the stock price consolidate to build the foundation at $196.
Benazir Bhutto’s assassination could well present the excuse for investors to sell and stocks to consolidate before the next rally (for certain stocks). Someone mentioned about two major occasions for Apple Inc. in Jan 2008 – MacWorld and Earnings. Do some research and you should be able to scoop some pocket money.
Other Articles That May Interest You …
- Silly Mistakes, Making Money and Christmas Eve’s Joy
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