Market Soapbox 10/15/08

WEN, and the black hole opened, DJIA -733 on average volume with disasterous internals. All DOWN 8%, XAU -11%; XOI -15%.

Bonds up -7bps 10 yr 3.95, $ up vs 1.3484 & porked vs 99.855y, WTI -5% $73.25, gold up $844.5, TED spread UP +3bps 4.34%.; Libor -9bps 4.55

SP500 998, gap down 994, off a cliff to 903, close 907. NDX 1364, gap down 1351, pop to 1356 then kaput to close 1244.

FRI: SP500 bounces from down 7.3% at today's low: SP500 -46% from its all time high. A near term bottom perhaps, a sucker rally or dead cat bounce is due.

MON: MEOW and how... the promise of a $2.3 Trillion direct injection of capital. DJIA largest point gain ever. Do not be fooled...

We will see at SP500 1020 or 1050 if this bounce has any legs. It could last two days or two weeks;

Whats next? Lower profits, more layoffs, 8% unemployment; real negative GDP...


TUE, the cat slammed into SP500 1050 and fell on corporate profit concerns.

Today, market participants woke up to our Whats next? and tore the legs off Monday's dead cat bounce with the largest decline since 1987.

St. Louis Fed Head Bullard said the September retail sales report signals Q3 real GDP could be flat or even slightly negative. Really?

Some investors still silly enough to be in this market, took Monday's dead cat bounce to liquidate before the bottom really drops out.

Yeah, you read that right. NDX 1130 could give another bounce on the way down to 975.

Often wrong, but never in doubt, this is the Nattering Naybob and you're not.

Comments

Mark said…
You perfectly called this one bro! I'm till a daily reader/lurker - I really enjoy your commentary and want you to know you aren't writing into the void.

I am in the market however and doing quite well, thanks to you and a few other skeptics (Mish, Schiff, and Fleck).

Take a look at these ETFs for making money off the shattering of the Grand Illusion:

SCC, EMU, RRZ