A Tale of Two Cities
The problem for this market is simple. All of these negative areas continue to weigh on the market. They are of no help. If they do not get a bid, the groups that have been working may just top and then we are back in trouble again. The main problem I am seeing right now is that the leading groups have made V-SHAPED moves up and could be prone to sharp pullbacks.
What Has Happened to Free Markets?
Investors who bought the top of the market in the year 2000 lost a lot of money. Were they bailed out for their stupidity? Nope! If they felt they were wronged, they sued…some won their cases…some lost.
Prediction: The Fed Will Cut Rates
I cast a suspicious eye at this one because 7 out of 10 stocks are in poor technical shape but will honor it by looking for sound high volume breakouts of leading growth stocks. Currently, it is slim pickings…so the market has some proving to do.
What, Me Worry?
I am simply amazed at Wall Street’s reaction to the recent plunge in the markets. It is like Wall Street has already forgotten that the DOW just dropped 1500 points. 7 out of 10 stocks still in bad technical shape. That is how deeply oversold the market was.
Whatever the Fed is Doing…Good Job!
Do not be lulled into a false sense of security. I have said recently that the only goal at this time was for the Fed and the boys to do everything in their power to prevent a meltdown because the leverage that is out there would indeed cause a crash.
By Definition, We Remain in a Downtrend
I do not think this economy is in recession. I believe many areas of the economy are in recession. If I was short, I would be scared every night going to sleep because you won’t know if the FED will cut rates the next morning. The hint: watch for a rate cut after the next big down day in the market.
The Crooks Will Be Exposed!
As I have stated, we are seeing the unwinding of the massive leverage that is in the system. This was brought to you by the so-called Masters of the Universe….
Global Credit Bubble in the Midst of Being Popped
I must say, in my years in this business, I have never seen the mood so down in the mouth. I have never seen so much worry…even about our whole financial system.
No One Has Learned Anything
Finally, the SEC is moving to investigate the books of a number of Wall Street Brokerage firms
The Seas Were Angry My Friend!
The market’s attempted rally is all but on the morphine drip as the big money crowd lit into the sell side causing painful losses for investors on Thursday…not just here but around the globe.
How to Read a Tough Market
In my last report, I stated that with all the bad news out, markets could perversely start to rally…especially with such deep oversold conditions as well as deep negative sentiment…
Can Fraudulent Loans Destroy this Bull Market?
There has been a lot of talk about whether the markets will be roughed up following a late Friday plunge. I have no idea…but do believe the volatility we have been seeing both up and down is just beginning.