MARKET COMMENT
For Sept. 4, 2008. Courtesy of Dave Fry, ETF Digest.
Mr. Market stopped in for a few belts and came out one nasty bear and beat bulls mercilessly.
Sure, there was a lot of news that would drive most to drink like poor employment data, dismal retail sales, negative comments by housing guru Robert Shiller, warnings of a financial tsunami by Bond Daddy Bill Gross and a poor report by networking giant Ciena.
Reality is tough to accept sometimes especially when talking heads in the media are chirping at you every day that “the bottom is in” and to “buy stocks with both hands”. Yesterday media clown in chief, Jim Crammer stated: “rallies are real but sell-offs phony”. He’s busy trying to find that tape to destroy it.
Volume increased during the phony [?] sell-off and breadth was as negative as expected.
That wraps it up for us this week other than our usual Friday night podcast. The idea that the Treasury [you and me] need to take over trillions in mortgage securities is an amazing notion. Nevertheless, you can’t dismiss the idea since no doubt the matter is being studied.
I’m gonna go find that bar and have a few belts myself.
All things considered, have a great weekend!
Disclaimer: Among other issues the ETF Digest maintains long or short positions in: UWM, IWM, QQQQ, QLD, IVE, XLY, IEF, TLT, UUP, FXE, DRR, GLD, DBC, DEE, EFA, EFU, EEM, EEV, and FXI.
