I’m very cautious here as we approach earnings season and the unemployment figures on Friday. Thursday’s have been rough in front of past unemployment reports so keep that in mind.
Alcoa is laying off 14,000 as it attempts cut costs and get ready for a “lengthy recession.” Saytem slumps 70% as the Chairman resigns and admits that cash was overstated and liabilities were understated. I’m sure the books in China are clean as a whistle though. The flow of Russian gas to Europe through the Ukraine has come to a complete halt just as temperatures plunge across the region.
Although some patterns look interesting I am still waiting for more pain. It’s coming, it’s just a matter of when.