contrarian@coalmine

Friday's Turnaround: Raid on the Shorts

One of the reason's I've stopped reading Bill's blog is his predictable whining when the market acts differently than he expects, especially on a daily basis, causing him to point fingers at the usual suspects. He embraces the Relative Strength Index (RSI) as if it's a true mathematical calculation of extreme market sentiment, rather than just another after-the-fact way of historically charting oversold and overbought conditions--"Gee Whiz, look at this chart, if I'd only bought when everybody hated this stock, and sold it when everyone loved it...I'd...I'd...I'd be RI..I..I..CH!!". When you lean too hard on a crutch, it can sometimes break.

That being said, Charlie Gasparino, a muscle-bound, macho man of a financial journalist, who claims access to the inner sanctums of Wall Street (ie The Boardroom), has been allowed for weeks to scream "Fire in the theatre!, the monolines are heading to a quick and painful bankruptcy; my 'sources' tell me so". He reiterated one of these rants of imminent demise on CNBC as late as Friday morning! Then, with a 1/2 hour left in a short trading week, he broadcasts that a "bail out" for Ambac is a certainty, and banks X,Y& Z are lined up to help.

Action/Reaction....sho... squeeze into the close.

On Monday some Power Pundit will reiterate the Financial Meltdown argument, the markets will plunge, and Bill Cara will say "you see, I told so...".

Yawn!