Wednesday Outlook: Reality Check Ahead

It’s probably just some profit-taking and today’s decline was probably well indicated by the McClellan Oscillator posted yesterday.



Within the selling there were plenty of strange crosscurrents including:

• Warnings galore from chip makers TXN, ALTR, BRCM and NSM that investors ignored bidding the stocks sharply higher;
• Chrysler not willing to show the government their books for bailout monies because they’re a private company [as if];
• NUE warns and the stock is also bid higher;
• Black Friday store sales reported their first decline in history, down 8.4%;
• Sony’s (SNE) going to layoff 8K workers and closing plants;
• GS has its earning forecast slashed by Deutsche Bank while former Bear Stearns honcho Ace Greenberg says the company failed because of rumors and not crappy investments [gimme a break!];
• The former criminals who ran FRE and FNM testified, sort of, before congress;
• Bond bubble bulls got all jiggy again as yields on T-Bills fell to negative as fear still reigns.
• What on earth did the Fryguy leave out? Okay, how about the crooked Governor of Illinois? Well, I was raised in Chicago so enough said.

Volume overall was about the same as yesterday. Breadth was negative but only modestly so. I’ve posted Yahoo/Finance data previously but you can see why I don’t like it since it’s hard to imagine up volume on the NYSE being 90%.



Compare it to WSJ data from the same period. What’s with Yahoo anyway?



And, our man in Geneva gives us his take.
























































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