Times like these I am satisfied being a nobody, because there is no need to lie for the sake of keeping my position. I don't have to spin fantasies claiming housing is at the root of the current financial crisis, and beyond this the U.S. economy is otherwise strong and resilient.No sir. If I were Treasury Secretary, there would be no AIG extorting the taxpayer. This is the essence of today's after-market news. This is what the free market has come down to.
No longer are the nasty intrigues of conniving financiers kept offshore in some god-forsaken corner of the globe, while naivety thrives here at home like a cancer. Today, Americans got a big taste of their decades-old, Wall Street directed, foreign economic policy as the chicken came home to roost in the U.S. Treasury.
And AIG, at least symbolically, has brought back the Revolutionary Era tradition of tar and feathering. A fitting fate for a monetarist monkey, huh Mr. Paulson.
Hey, are you hearing both presidential candidates attacking Wall Street? How could this attitude possibly resurrect the dying bull anytime in the foreseeable future?
Nothing new to report on the technical front. All observations noted in yesterday's "Capitulation!" post still stand.
Of course, with this morning's breakdown there were more new 52-week lows registered on both the NYSE and NASDAQ today versus yesterday. Still, though, the differential between new 52-week highs and lows is not as wide now as it was at the July low. So, this positive divergence still continues.
Volume is demonstrating that chunky look typical of turning points over the past year or so. Rather than turn on a dime, though, I would like to see the S&P 100 move below today's low on lighter volume (after trading sideways for a day or three), and at the same time have RSI and MACD register divergences as bottom to the move lower from 8.11.08 is reached.
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2 comments:
Hi Tom,
Ran accross your site while researching for a stratergy to sell naked OEX call options in a bear market. I'm thinking it could be a low risk way to make some money. Any suggestions?
Hello Greg.
Well, knowing neither what contract month nor what strike you are thinking about, I simply will suppose your thinking on selling naked calls supposes the market will sooner fall hard before it rises sharply. I do not agree this is the more likely possibility here. So, be careful.
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