Watchlist for 7/31/08

Sad Day

The Seattle Sonics are no more. The gutless City of Seattle reached a a settlement this afternoon with the thieves that bought this team from our gutless former owner, Howard Schultz. Ugh.... All we have left now is YouTube highlights of the Reign Man and the Glove.

Paul Desmond (Lowry's): "Quite a ways from a bottom"

"We think we're still quite a ways from a bottom," Desmond warns. Over the next year, he expects the Dow to fall 30% to 50% from its October '07 top. The market could enjoy a few short-lived rallies during that span, like the one we experienced from March through May. But each rally is apt to result in a lower high and a lower low in the market.

 - Barron's 6/30/08

Desmond is the author of the esteemed Lowry's Report and is someone I go out of my way to listen to. 

Below I've attached a chart showing the 30% and 50% retracement levels off of that Oct '07 top.