MARKET COMMENT
November 25, 2008. Courtesy of Dave Fry, at ETF Digest.
The US consumer needs a credit card bailout like a crack addict needs another fix. Now we’re going to backup credit card debt and auto loans.
When all this bailing out started I tossed out the old English maxim: “In for a penny, in for a pound.” That was an understatement. Once the government went down this road there was no stopping them.
Da Boyz on the trading desks and hedge funds like all this money pumping so they bid up stocks when they can.
Once again volume really didn’t pick up until the last hour but what there was wasn’t impressive. Breadth was good but not great. And, just in the nick of time fellow blog reader and subscriber David Hurwitz provides us with today’s data direct from Geneva where he’s vacationing. Thanks David! Now go have some fun!
ProShares launched leveraged long/short euro ETFs today. [Ultra Long, UCE and Ultra Short EUO].
ProShares launched leveraged long/short Yen ETFs today as well. [Ultra Long Yen YCL and Ultra Short YCS].
ProShares will launch leveraged Long/Short gold ETFs tomorrow I believe. [Ultra Long Gold UGL and Ultra Short Gold GLL].
ProShares launched leveraged long/short oil ETFs today. [Ultra Long UCO and Ultra Short SCO].
Well, just because I feel like it, below is the CSI 300 Shanghai Index which we cover. It’s a weekly chart with DeMark Indicator annotations. You’ll note the current 9 indicating the downtrend may be ending. Let’s see how this works out. And, this is not a recommendation!
Sure, the major problem Chucky the Consumer has is he needs a fix. And our generous government is going to give him one courtesy of taxpayers. Does this make you happy? It seems so over the top to me.
“Obama promotes fiscal restraint, big spending”
So ran the AP headline this morning. I had to read it twice then concluded George Orwell would be proud. I wonder if headline writers understand what they’re saying sometimes.
There’s a lot of big spending going on and not much fiscal restraint. We’re into the trillions now as if it’s a mere bag of shells as W. C. Fields would say.
I would love to see markets work sideways for some weeks to relieve current oversold conditions. From that perhaps short or long positions could be entered. It’s really hard to judge from current views. But economic conditions are deteriorating at lightening speed. With each passing day more bad news drips on us and most investors remain in shock.
I may not post tomorrow as volume should dry up in the afternoon. Friday is a short day. If I don’t post, let me take this opportunity to wish everyone a safe and Happy Thanksgiving!
Disclaimer: The ETF Digest has no positions.
