Stocks Show Classic Bear Signals, And This Time,

Impact Is Global

A classic bear market starts with a period of exuberance. Then a downturn hits one part of the market, and gradually, the losses spread even to strong companies. A prolonged grind begins.

It happened in the 1970s, when an oil embargo helped puncture the "nifty fifty" big-company stocks, and again in 2001, when the bursting of the Internet bubble caused a broad decline. Now, investors shaken by two days of severe volatility fear another bear market -- only this time, it would fully span the globe.

Even as some world-wide markets recovered yesterday on the back of the Federal Reserve's surprise 75 basis point cut, this may be just a breather before the sell-off begins in right earnest.

For eternal Bulls, this might be an opportunity to lighten positions and not to build new one.

What most investors need to avoid in the current scenario are stocks as follows:

1. RPL

2. RNRL

3. RIIL

4. HFCL

5. Tata Tele

6. IFCI

7 . Ispat Industries

8. Hindustan Motors

9. Bellary Twins

10. Facor Trio

11.Sunflag Iron

12. Compact Disc

13. Tips Cassettes

14. Dena Bank

15. UCO Bank

16. Deccan Gold

originally published by MAVERICK