FEBRUARY 20, 2008: Inflation showed up again today in the ‘hot’ CPI number. In January, core inflation rose 0.4% vs the forecasted 0.3%. Minutes from the last Fed meeting however indicated that the they would do everything they could to keep the economy from going into a recession. The Nasdaq celebrated by rallying 0.9% on heavier but average volume.
Retailers, oil drillers, and steel producers were strong today. Medical related, solars, and automobile stocks sold off. Transocean was up 7%. Research in Motion advanced 5%, and fertilizer maker Mosaic moved up 4%. Suntech Power dropped 12% and Sunpower lost 4%.
The Nasdaq is now 19% off it’s October highs. Stimulus packages, multiple rate cuts, bail-outs, etc. may have brought us a ‘counter-trend’ rally but have failed to change the direction of the markets, which is decidedly down.
Counter-trend rallies during corrections are by no means a signal to jump back in the markets. Bear market rallies can be sharp to the upside and come back down even faster. It’s best to wait for a ‘follow-through’ day and see top-rated stocks breaking out of proper bases before committing money to the long side of stocks.
Don’t forget that the banking system is in serious trouble, the housing sector is in ‘melt-down’ mode and the consumer feeling the pinch of higher inflation and less access to credit. More info at www.goldenticker.com
FEBRUARY 19, 2008: Oil closed above $100 for the first time today sending inflation fears rippling through the markets. The Bank of England may not be cutting rates soon due to inflation worries as well. It was also announced over the weekend that the U.K. will be nationalizing the failed lender Northern Rock, essentially taking on it’s massive sub-prime losses. The Nasdaq fell 0.7% on below average volume.Precious metals, steel, and oil related stocks were strong. These are typically seen as inflation hedges. Retail and finance stocks were among the weakest groups. Mechel Oao Steel was up 10%, fertilizer maker Mosaic advanced 6%, and leading gold miner broke out of a triangle formation and shot up 6%. Chinese solar Yingli Green Energy lost 8%, and Bidu.com lost 5% and fell further below its 200-day line.
The Nasdaq is now almost 20% off it’s October highs. Stimulus packages, multiple rate cuts, bail-outs, etc. may have brought us a ‘counter-trend’ rally but have failed to change the direction of the markets, which is decidedly down.
Counter-trend rallies during corrections are by no means a signal to jump back in the markets. Bear market rallies can be sharp to the upside and come back down even faster. It’s best to wait for a ‘follow-through’ day and see top-rated stocks breaking out of proper bases before committing money to the long side of stocks.
Don’t forget that the banking system is in serious trouble, the housing sector is in ‘melt-down’ mode and the consumer feeling the pinch of higher inflation and less access to credit. More info at www.goldenticker.com
FEBRUARY 15, 2008: Stocks and volume were mixed today on this fairly quiet options expirations day. Monday’s holiday may have contained things a bit. The Nasdaq fell 0.5% and was down for the second day in a row after IBD called a ‘confirmed rally.’ They have since changed to ‘rally under pressure.’
International Oil producers, food, and medical stocks were strong. Biotechs, solars, home builders, and semicondutors were weak. Priceline.com roared up 21% after beating earnings estimates. Yinglee Green Energy fell 13% after missing views. Chipotle Mexican Grill continues to fall hard.
The Nasdaq is now over 19% off it’s October highs. Stimulus packages, multiple rate cuts, bail-outs, etc. may have brought us a ‘counter-trend’ rally but have failed to change the direction of the markets, which is decidedly down. Counter-trend rallies during corrections are by no means a signal to jump back in the markets. Bear market rallies can be sharp to the upside and come back down even faster. It’s best to wait for a ‘follow-through’ day and see top-rated stocks breaking out of proper bases before committing money to the long side of stocks. Don’t forget that the banking system is in serious trouble, the housing sector is in ‘melt-down’ mode and the consumer feeling the pinch of higher inflation and less access to credit. More info at www.goldenticker.com
FEBRUARY 11, 2008: The Nasdaq was up 0.7% but it continued its trend of lighter volume on up days and heavier trade on down days. This is opposite of what you want to see if you’re bullish. Alternative energy, steel, farm machinery, and agriculture related stocks were strong today. Russian steel maker MTL was up 11%. Suntech and Sunpower were both up 11% as well. Oil was up another $2 on tensions with Hugo Chavez and Venezuela. Finance and insurance companies were weak. The Nasdaq is now 19% off it’s October highs. Stimulus packages, multiple rate cuts, bail-outs, etc. may have brought us a ‘counter-trend’ rally but have failed to change the direction of the markets, which is decidedly down. Counter-trend rallies during corrections are by no means a signal to jump back in the markets. Bear market rallies can be sharp to the upside and come back down even faster. It’s best to wait for a ‘follow-through’ day before committing money to the long side of stocks. Don’t forget that the banking system is in serious trouble, the housing sector is in ‘melt-down’ mode and the consumer feeling the pinch of higher inflation and less access to credit. More info at www.goldenticker.com
STARBUCKS: The “Kid From Brookly” goes to Starbucks. Warning: Foul Language
FEBRUARY 8, 2008: Stocks were mixed today and ended the week down as the ‘bear’ continues to slowly maul the ‘bulls.’ For the week the Nasdaq was off 4.5% and the S&P 500 lost 4.6% wiping out last weeks gains. Energy stocks did well as oil shot up $4. Mining and steel stocks also did well. MTL was up 7%. Transports, financials, and retail stocks were weak. The Nasdaq is now 19.5% off it’s October highs. Stimulus packages, multiple rate cuts, bail-outs, etc. may have brought us a ‘counter-trend’ rally but have failed to change the direction of the markets, which is decidedly down. Counter-trend rallies during corrections are by no means a signal to jump back in the markets. Bear market rallies can be sharp to the upside and come back down even faster. It’s best to wait for a ‘follow-through’ day before committing money to the long side of stocks. Don’t forget that the banking system is in serious trouble, the housing sector is in ‘melt-down’ mode and the consumer feeling the pinch of higher inflation and less access to credit. More info at www.goldenticker.com
The E-Trade baby – evidence that the markets can make you puke lately.
FEBRUARY 4, 2008: The Nasdaq fell 1.3% on light post super-bowl volume. The move down was led by last week’s leaders like financials and retail. Google fell another $20 today and closed below $500 for the first time in 6 months. Stimulus packages, multiple rate cuts, bail-outs, etc. have brought us a ‘counter-trend’ rally but have failed to change the direction of the markets, which is decidedly down. Counter-trend rallies during corrections are by no means a signal to jump back in the markets. Bear market rallies can be sharp to the upside and come back down even faster. It’s best to wait for a ‘follow-through’ day before committing money to the long side of stocks. Don’t forget that the banking system is in serious trouble, the housing sector is in ‘melt-down’ mode and the consumer feeling the pinch of higher inflation and less access to credit. More info at www.goldenticker.com
HOW TO GET RICH THE DONALD TRUMP WAY (Frank TV) Funny!
Things may be getting really scary on the global financial scene, but always remember to smile no matter what happens.
JANUARY 25, 2008: The nascent 2-day rally could not make it a third day as all 4 major indexes staged a ‘bearish reversal’ but pulled back in lighter volume. The Nasdaq started out strong but lost 1.5% and was down 0.6% for the week. It’s hard to believe that the Fed did a ’shock and awe’ surprise rate cut of 3/4% this week. This is an indication that we are in a severe correction. Credit concerns got the blame again today for the fall. The light volume today may be due to traders staying on the sidelines ahead of next week’s Fed meeting where they are widely expected to cut rates further. Transports, fertilizers, and solar stocks were strong today. Finance, retailers, and computer related stocks were weak. Some leaders were SPWR +6%, MTL +7%. Notable losers were YGE -5%, RIMM -4%, AAPL – 4%. This latest rally has the feel of ’short covering’ and is by no means a signal to jump back in the markets. Bear market rallies can be sharp to the upside and come back down even faster. It’s best to wait for a ‘follow-through’ day before committing money to the long side of stocks. More info at www.goldenticker.com
This is timeless! Cramer has a full and complete meltdown on CNBC as he begs Ben Bernanke to cut interest rates. Seems like Jim is still carrying lots of baggage from his failed hedge fund.
Sage investing advice from the beach.
January 17, 2008Thought you could all use a break from the downer markets and the cold of winter. This is from “Wallstrip” and the always lovely Lindsey Campbell.
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