MARKET COMMENT
Dave Fry, at ETF Digest, February 10, 2009.
Sell the news? The rally was phony? It’s back to the main bear trend? Was it just a hissy fit?
We won’t know until tomorrow probably.
TTT (Turbo-Tax Tim) delivered his bank bailout plan which didn’t cheer investors. It also didn’t square with the recipe posted yesterday via the BBC interview with former IMF economist Ken Rogoff. His prescription of placing banks in receivership has a “get it over with” message which is too bold for current White House insiders to swallow. They have friends on Wall Street who wouldn’t want to see their stocks vaporized. The pressure not to do this must be intense but doing so seems to be the ultimate solution.
The porkulus stimulus package, now passed with details yet to be finalized by conference committee, didn’t thrill investors either. Perhaps this was a sell the news type of event.
If the PPT is active in the market they surely would have shown up today to lend support to TTT, Bernanke’s testimony and the porkulus stimulus package.
Stocks cratered and investors scampered back to bonds, gold and to a lesser extent the US dollar. Volume increased and breadth was horrible.
