Market Observations 08/10/07
$29 B Renaissance Institutional Equities Fund has fallen 8.7% so far in August. Is it a crisis yet?
Today, multiple Fed sorties $19 B in early Fed Open Market Reanimation, then another $16B, then another $3B for $38B. ECB another $83.6 B... do ya think?
Cry of The Valkries could be heard as Central Bank helicopters circled while Bennie dropped the money, saluted and screamed:
"I love the smell of freshly printed currency in the morning, it smells like debauchery."
Yesterday: "watch current support at SP500 200 DMA 1450 & 250 DMA 1425 very closely."
SP500 open 1453, then dropping 25 pts to 1429, catching support just above 250 DMA 1425, then after Fed reanimation, bouncing back about 200 DMA to close at 1453.
Is it a dead cat twice bounced on the step of 1425? Perhaps, it sure smells like the reanimated cat from Pet Sematary as the wild intraday swings continue.
Does it have 9 lives? We've said it before and we'll say it again this stock market is a dead man walkin; the Fed can try and reanimate this zombie as much as it wants.
At some point the magic is going to wear off, and the incantations won't work anymore, de leveraging unwinds have the multiplier effect working in full reverse.
Me thinks by late October the hammer of sentiment comes down along with interest rates as the helicopter drop and real tailspin truly begins.
Often wrong, but never in doubt, this is the Nattering Naybob and your not!
Today, multiple Fed sorties $19 B in early Fed Open Market Reanimation, then another $16B, then another $3B for $38B. ECB another $83.6 B... do ya think?
Cry of The Valkries could be heard as Central Bank helicopters circled while Bennie dropped the money, saluted and screamed:
"I love the smell of freshly printed currency in the morning, it smells like debauchery."
Yesterday: "watch current support at SP500 200 DMA 1450 & 250 DMA 1425 very closely."
SP500 open 1453, then dropping 25 pts to 1429, catching support just above 250 DMA 1425, then after Fed reanimation, bouncing back about 200 DMA to close at 1453.
Is it a dead cat twice bounced on the step of 1425? Perhaps, it sure smells like the reanimated cat from Pet Sematary as the wild intraday swings continue.
Does it have 9 lives? We've said it before and we'll say it again this stock market is a dead man walkin; the Fed can try and reanimate this zombie as much as it wants.
At some point the magic is going to wear off, and the incantations won't work anymore, de leveraging unwinds have the multiplier effect working in full reverse.
Me thinks by late October the hammer of sentiment comes down along with interest rates as the helicopter drop and real tailspin truly begins.
Often wrong, but never in doubt, this is the Nattering Naybob and your not!
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