Jul
15
Written by:
Arthur Daret
7/15/2008 8:45 AM
There has been a large increase in the number of stocks hitting new 52 week lows on the same day; over 30% to be more precise. Historically, this has been a positive for stocks and signals panic selling among investors. Over the past couple of days, the reading has been around 800, but today it is pushing well over 1,000 for one of the few times in history. 10/19/87, 08/31/98 and 08/16/07 are the only other dates.
The bank failures news (Indymac) has also coincided with market bottoms (or close to) in the past. The estimated number of bank failures is around 150. This however is far lower than the number of banks that failed during the savings and loan crisis in the 1980's
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