October 14, 2008, courtesy of Dave Fry at ETF Digest
Even Superman has that queasy unsettled feeling.
It’s pretty amazing that the former Chairman of GS, now as Treasury Secretary, is buying stock in GS with taxpayer money. There’s something really wrong with that…I’m just sayin’.
Profit-taking is good for the markets health. According to yesterday’s data showing a 90/10 day, Lowry’s Research would assert we’ve started a new bull market. Ya think?
Since we’re almost entirely in cash, this might be a great time to take a short vacation since that opportunity is often unavailable. Besides, I don’t think we’ll be doing anything until Monday anyway. But I’ll probably post Wednesday then head down to the coast.
Volume increased on selling today so it seems while breadth was fairly even on the NYSE but more negative on the NASDAQ.
Despite all the hoopla the LIBOR rate remains historically high making credit market conditions still tight.
And, while we’re at it, look at how poorly bonds are performing.
The big concern for bulls should be the amount of money withdrawn from markets. Trim Tabs reports $65 billion in recent mutual fund redemptions and suggests hedge fund withdrawals may be in the tens of billions. So, the fuel to drive prices higher is lacking.
Troubling is the story suggesting Morgan Stanley’s John Mack will take Mitsubishi and Treasury money to expand the firm by squashing competition. I don’t like that kind of behavior one bit especially with taxpayer money. I thought we were there to “save them” not subsidize their expansion.
We get PPI and Retail Sales tomorrow not to mention more earnings news. So, the beat goes on. Perhaps folks will start paying attention to this type of news more so than the next bailout. But earnings won’t be good no matter how Wall Street and the financial media try to spin it.
Then there’s that election thing to contemplate.
Have a pleasant evening.
Disclaimer: The ETF Digest has no positions in any of the highlighted securities.