Wednesday Outlook: Staying on the Sidelines
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 market's health. According to Monday’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 yesterday 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.
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This article has 3 comments:
- n.a.
- 1 Comment
Oct 15 07:13 AM- gabe borenstein
- 176 Comments
My Website
Oct 15 08:37 AMThe Treasury had partially modified the 700 billion dollars "stability plan" by implementing some of the European ideas .Basically by "investing "in the key financial institutions ,the Treasury will instill business/consumer confidence in the financial sector.The object of this plan is to inject liquidity into the financial sector in the most effective way.
Once we stabilize the financial sector ,the U.S economy/market are heading for a major rebound .
In fact for all of the nonsense about Depression/Recession,t... measures in place are likely to deflect recession .
The program has just been announced ,so let's allow for the full implementation of the "antidode" and allow some incremental time for the economic response.
No doubt by the time we get to Christmas ,the economy (GDP)will growing at 2%-3%.By the second QTR of 2009 we will expand at 5%.
The taxpayers will likely see a substantial gains on their "investment" in the financial sector.
I will repeat the following again ,I have issued a warning about today's issue as early as June of 2005 and I have reiterated the warnings on september18 ,2007(Boomberg TV -Brian Sullivan during the FED time).
Now that the issues have been identified and are being addressed ,I am bullish on the market and constructive on the U.S economy.
The FED could accelerate the "healing process"and the magnitude of the rebound by easing another 50 bps,either way a significant growth lies ahead.
For all of the "analytical terror",that investors were subjected to,we will see Dow at 20,000 within next two years.
The current debacle had restructured the financial sector and made other sectors globally competitive-Adam Smith's invisible hand?
I just wish that the autor of this article and many others had properly evaluated existing risks and instead of being critical had offered constructive alternative solutions .
Sometimes even free markets need a helping hand.
- irondoor91
- 118 Comments
Oct 15 10:04 AM