The Dow Theory
Pot calls Kettles Black... Goldman Sachs said credit market losses may cause Citigroup, the biggest U.S. bank,
to report $15 billion in writedowns over the next two quarters, and downgraded the stock from neutral to sell.
Goldman also cut its share price estimate on Merrill Lynch, Morgan Stanley, Lehman Brothers, Bear Stearns, JPMorgan and E*Trade.
Finance, real estate and banking, just keep on tanking...
Economic Soft wear... The new economy isn't immune as Deutsche Bank cuts its target on eBay to $30 from $33.
HP beat the number, PC prices are down 15% and HP net was up 28%. But the market wasn't buying the hype today. This is the new economy, how unfortunate for US.
Sales of offshored PC's, cell phones, PDA's, Ipod's and video games do not make an economy. Durable economic activity, in particular domestic manufacturing does.
Pay no heed to the man... Henry Paulson says the U.S. economy will continue to grow despite normal ups and downs.
Paulson also says inflation is "relatively contained" despite higher energy prices. Sure thing Hank!
Pay heed to the Dow Theory... As mentioned previously, the transports have broken down.
On 07/19 the DJTA surged to a record of 5,514, since, it is down 19%, falling today to its lowest since Oct 06 at 4457.
One would be wise to pay heed to the 123 year old theory that says truckers, railroads and airlines lose business before the economy slows.
Watch the transports, as they go, so goes retail and the industrials.
Housing responsible for 80% of new job "growth" since 2001...
Lowe's missed its Q3 earnings and lowered its Q4 estimates. NAHB Housing Index matched its all time low since 1985 of 19. Tomorrow, the horror of housing starts & permits.
Sound familiar?? According to Bear Stearns the Fed won't cut their benchmark interest rate on Dec. 11, spurring a sell off in U.S. stocks and a rebound in the dollar. "The market has it wrong.
There is a substantial amount of froth in many stocks that have risen in anticipation of additional rate cuts and dollar weakness. Our read is that the Fed will hold steady and the market will be disappointed."
The Nattering One muses... the Fed is between a rock and a hard place, more cuts beget further runaway stagflation, no cut throws Momma (the stock market & housing) from the train. Either way, we lose big.
Speaking of losing big... we took the Bills at home -16.5, and would have needed -46.5 to cover. Pats 56-10, DOH!
The Pats will host the AFC title game at 17-0, should they beat Indy (without McFarland & Freeney),
then a historic date with the Packers or Cowboys shall await. Can you say double digit favorite? I can.
to report $15 billion in writedowns over the next two quarters, and downgraded the stock from neutral to sell.
Goldman also cut its share price estimate on Merrill Lynch, Morgan Stanley, Lehman Brothers, Bear Stearns, JPMorgan and E*Trade.
Finance, real estate and banking, just keep on tanking...
Economic Soft wear... The new economy isn't immune as Deutsche Bank cuts its target on eBay to $30 from $33.
HP beat the number, PC prices are down 15% and HP net was up 28%. But the market wasn't buying the hype today. This is the new economy, how unfortunate for US.
Sales of offshored PC's, cell phones, PDA's, Ipod's and video games do not make an economy. Durable economic activity, in particular domestic manufacturing does.
Pay no heed to the man... Henry Paulson says the U.S. economy will continue to grow despite normal ups and downs.
Paulson also says inflation is "relatively contained" despite higher energy prices. Sure thing Hank!
Pay heed to the Dow Theory... As mentioned previously, the transports have broken down.
On 07/19 the DJTA surged to a record of 5,514, since, it is down 19%, falling today to its lowest since Oct 06 at 4457.
One would be wise to pay heed to the 123 year old theory that says truckers, railroads and airlines lose business before the economy slows.
Watch the transports, as they go, so goes retail and the industrials.
Housing responsible for 80% of new job "growth" since 2001...
Lowe's missed its Q3 earnings and lowered its Q4 estimates. NAHB Housing Index matched its all time low since 1985 of 19. Tomorrow, the horror of housing starts & permits.
Sound familiar?? According to Bear Stearns the Fed won't cut their benchmark interest rate on Dec. 11, spurring a sell off in U.S. stocks and a rebound in the dollar. "The market has it wrong.
There is a substantial amount of froth in many stocks that have risen in anticipation of additional rate cuts and dollar weakness. Our read is that the Fed will hold steady and the market will be disappointed."
The Nattering One muses... the Fed is between a rock and a hard place, more cuts beget further runaway stagflation, no cut throws Momma (the stock market & housing) from the train. Either way, we lose big.
Speaking of losing big... we took the Bills at home -16.5, and would have needed -46.5 to cover. Pats 56-10, DOH!
The Pats will host the AFC title game at 17-0, should they beat Indy (without McFarland & Freeney),
then a historic date with the Packers or Cowboys shall await. Can you say double digit favorite? I can.
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