Wednesday Outlook: Commodities, Global Markets

<< Return to page 1 - Stocks Ignore the Bad News

So, it’s that “better than expected” deal again, eh? Ignore the “worse than expected” housing data and focus on what suits your purpose. But, again, it’s been a trader’s market. We’re also approaching the end of the month in just a handful of days so there’s a desire to make things look good. It’s the way things work.

The bond market is the big loser and it’s about time. The worse it gets the bigger a drag that may be on stocks.

In the bag of tricks department is the Bloomberg story I alluded to in the financial chart which outlines the accounting trickery for banks like JPM in their WaMu transaction.

The best news of the day comes from healthcare. Since many of you have written and expressed your concern I’ll let you know the doctors have given us good news for Francie. She probably won’t need chemotherapy or radiation. This has surprised them and us in a great way. Now, the only problem is the Fryguy here has pneumonia, but that will go away soon enough. I assume despite the medications this report was lucid…er, right?

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Comments

[doubleguns:]

Pneumonia, ya don't get any goood medications with that one. Time for the whiskey I guess.

Glad to hear the really good news about Francie.

Looks like we will have to include the Fryguy in the prayers now.

Thanks for all you do for us here.

May 26 08:19 PM

[Daniel Herkes:]

"So, it’s that “better than expected” deal again, . . ."

They are wearing that one out pretty quickly. The markets are not rational in good times, and they are pretty weird right now. I keep expecting a sell off, but I guess we'll just have to ride the see saw until the status quo reaches equilibrium. I wonder just how many people did think the housing numbers were going to improve?

May 26 08:51 PM

[jr7107:]

David, thanks for your work during these difficult times. Best wishes to the family on truly very positive news.

May 26 09:21 PM

[seannie:]

Was very glad to read your news regarding Francie - I hope this means that this episode is behind you both and you can now go get on with your lives. This was the best outcome that could have been hoped for. Good fortune and good doctors make good long lives.

Much luck to you both, and thanks for your efforts here

May 26 09:46 PM

[Steven Alex...:]

Great Article! Hope you and your family get well!

Would love to pick your brain on some of the things you pointed out. Any advice on the best way to learn and understand different aspects of the market?

May 26 11:05 PM

[Peter Cooper:]

Surely the GM bankruptcy is going to be the party pooper! You just have to look around for the 600 pound gorilla sitting in the corner. Yes the police have been called and this party is about to end, see:
arabianmoney.net/2009/.../

May 27 01:37 AM

[xgi:]

Very insightful comment about China and North Korea.

May 27 02:11 AM

[Kellogg9:]

GM is the only bad news of the bunch that might turn things sour. We shall see but in the end i think it is a necessary thing.

Kelly - www.stockcoupons.com/

May 27 06:59 AM

[Maxe Paul:]

Interesting to note a 5 wave uptrend has been completed now in many market sectors and countries. Consolidation must surely occur now.

May 27 08:09 AM

[bricki:]

I don't think GM bankruptcy news will affect the market. It's expected, and putting it off won't help the economy at all.

What would affect the market badly would be unexpected bad news in a forward looking indicator like rate of layoffs. So if the ripple effects of the bankruptcy cause a big spike in job losses then we would likely see a retracement in the market.

Such a retracement is probably due anyway. Upside volume is declining making me believe that the rally is losing steam.

May 27 09:48 AM

[sacking:]

Glad to hear your wife is doing better.

I got into ILF to play the Brazil / SA markets and look forward to positive returns. Thanks for your insights.

May 27 12:45 PM

[AndrewBaker:]

Light volume gives the rampers an easier task to get prices up as they move more on less when volume is low, but even though, as I write two hours from the close, financials and the S&P itself has turned down appreciably. Can we be coming to the point when there is no more ramping that can successfully be done? If so, then watch the emerging and eastern markets weaken as there are several gaps on these charts that will be filled, meaning they will come down too. Very interesting ... especially as this is the fourth day I'm holding on to FAZ. Talk about money where mouth is!

May 27 02:15 PM

[chleoku:]

Good article. No matter how much they buy into the 'good news' the fundamentals are still very weak, not to mention the unemployment rates:

www.wealthalchemist.co.../

GM and other bankruptcy will continue to eat up the gov spending which will force the market to face the reality

May 27 11:14 PM