Bob'29

ETF Market Trends: Bears Emerge from Hibernation in Oversold Market

According to Tradingmarkets.com's expert at back-testing and quantifying market move's: Of the 58 times the market has been this oversold; it has rallied strongly within a few days 89.9% of the time. Also stated; There is a likely small cap liquidation by a large or several large hedge or mutual fund companies as determined by the number os unrelated small cap stocks that are getting trounced. When this has happened in the past small caps have rallied 20-30% within a few days. Position for the oversold bounce from these extremes!

A Week of Superstar Bears Moving the Market

Comment on a Barron's article:
"Blind Jockey Goads Horse Off the Track" Mr. Vito fails to inform us that some of the "spectacular" earnings of the week were actually abysmal. Intel beat their results of the '08 melt down quarter. Not exactly great...in fact very poor. Goldman Sacs made money after billions of government AIG bailout were siphoned in their back door. Both Paulson and Geitner are good ol' Goldman boys. A new rule prevents disclosure of where big block trades come from (the ones that have caused the late day moves this week). Can you smell Goldman Sacs? Are we happy that the government can now directly manipulate stock prices so that today's pain is put off until tomorrow. Unemployment is over 10% in fifteen states. The author is correct. We are we dupes with wool over our eyes. We are sheep ready to be skewered for the poolside barbecue. We are lemmings jumping into toxic water.

Lehman CDS Auction Ends, Now What?

This highlights an important aspect of the current market crash. The Fed underestimated the effect of not bailing out Lehman. In short hind sight this was a huge error. With the collapse of Lehman Brothers the insurers that guaranteed its bonds needed to come up with enormous amount of cash. These insurers held very large equity and commodity positions that they needed to sell at any price to come up with their insurance promises to Lehman bond holders. This is quite possibly many times greater than the hedge fund liquidations. There have been suggestions that the U.S. government buy commodity futures to stabilize the market, as the commodity crash will effect the U.S. agricultural production in the immediate future.