Market Observations 01/11/08
Resistance: DJIA 12850 (350DMA); SP500 1425 (400DMA); NAZ 2515 (300DMA); NDX 1950 (250DMA)
Support: DJIA 12475 (450DMA); SP500 1380 (550DMA); NAZ 2410 (550DMA); NDX 1880 (350DMA)
Tues: "We sense a bounce around SP500 1373." Wen: "Perhaps some choppy up action?" "Is it a dead cat bounce" Yes on all counts.
Thu: "Support SP500 450 DMA 1410, NDX 300 DMA 1910." There again.
NDX gap down 1953 to 1940, plunge to 1900, bounce to close 1912. SP500 open 1419, plunge to 1394, bounce to close 1401. DJIA sitting on 400DMA 12600,
Countrywide and FHLB bailout by BofA & Fed did not work. We have Nattered about the Kona Pipeline on 08/12/07 and incoming Tidal Wave here...
"If you think this set of Trestle's like waves in the RMBS and credit markets was harsh, you and the central banks ain't seen nothing yet.
Don't look now, but the next set of waves are Kona Pipeline size, and there is no way to avoid them.
Not even a duck dive will save the hardiest from getting sucked into this wash cycle. Dude, you better be able to hold your breath."
Today, Robert Shiller, Yale professor of economics and co-creator of the S&P/Case-Shiller Home Price indexes also compared the housing slump to a "tidal force" and commented :
"There's a tendency for people to underappreciate the risk of the housing market. I might have a lower valuation of Countrywide than Bank of America does.
Maybe Countrywide and Bank of America are going to have some problems going forward.
When people see that their houses are worth a lot less than their mortgage balance, they have an incentive to default.
The troubled mortgages that Countrywide already has (7% of $1.5 Trillion are 60 days delinquent) will be followed by even more troubled ones."
This is the worst annual start since 1982. The CON-fidence game is over. Wells Fargo, JP Morgan and Merrill Lynch report next week, get your parachutes ready.
And in our best Casey Kasem.. Our Year End Deadpool had Countrywide #3, but they are now gone, RIP and on with the countdown.
WaMu jumps to #3, Merrill Lynch steady at #2 and hangin on to the #1 spot with their Titantic hit...
"HELP! This sinking ship needs another $15 billion to stay afloat"... Citigroup!
Citigroups largest individual shareholder, Saudi Arabian Prince Alwaleed bin Talal will inject $13 billion cash...
and the China Development Bank is expected to invest another $2 billion to keep Sillygroup temporarily solvent.
When Mystery Inc pulls the mask off this villain, its gonna be an ugly two headed monster that looks alot like...
Alan Greenspun and Hanky Paulson, Zoiks Scoob!!! Often wrong, but never in doubt, this is the Nattering Naybob and you're not!
Support: DJIA 12475 (450DMA); SP500 1380 (550DMA); NAZ 2410 (550DMA); NDX 1880 (350DMA)
Tues: "We sense a bounce around SP500 1373." Wen: "Perhaps some choppy up action?" "Is it a dead cat bounce" Yes on all counts.
Thu: "Support SP500 450 DMA 1410, NDX 300 DMA 1910." There again.
NDX gap down 1953 to 1940, plunge to 1900, bounce to close 1912. SP500 open 1419, plunge to 1394, bounce to close 1401. DJIA sitting on 400DMA 12600,
Countrywide and FHLB bailout by BofA & Fed did not work. We have Nattered about the Kona Pipeline on 08/12/07 and incoming Tidal Wave here...
"If you think this set of Trestle's like waves in the RMBS and credit markets was harsh, you and the central banks ain't seen nothing yet.
Don't look now, but the next set of waves are Kona Pipeline size, and there is no way to avoid them.
Not even a duck dive will save the hardiest from getting sucked into this wash cycle. Dude, you better be able to hold your breath."
Today, Robert Shiller, Yale professor of economics and co-creator of the S&P/Case-Shiller Home Price indexes also compared the housing slump to a "tidal force" and commented :
"There's a tendency for people to underappreciate the risk of the housing market. I might have a lower valuation of Countrywide than Bank of America does.
Maybe Countrywide and Bank of America are going to have some problems going forward.
When people see that their houses are worth a lot less than their mortgage balance, they have an incentive to default.
The troubled mortgages that Countrywide already has (7% of $1.5 Trillion are 60 days delinquent) will be followed by even more troubled ones."
This is the worst annual start since 1982. The CON-fidence game is over. Wells Fargo, JP Morgan and Merrill Lynch report next week, get your parachutes ready.
And in our best Casey Kasem.. Our Year End Deadpool had Countrywide #3, but they are now gone, RIP and on with the countdown.
WaMu jumps to #3, Merrill Lynch steady at #2 and hangin on to the #1 spot with their Titantic hit...
"HELP! This sinking ship needs another $15 billion to stay afloat"... Citigroup!
Citigroups largest individual shareholder, Saudi Arabian Prince Alwaleed bin Talal will inject $13 billion cash...
and the China Development Bank is expected to invest another $2 billion to keep Sillygroup temporarily solvent.
When Mystery Inc pulls the mask off this villain, its gonna be an ugly two headed monster that looks alot like...
Alan Greenspun and Hanky Paulson, Zoiks Scoob!!! Often wrong, but never in doubt, this is the Nattering Naybob and you're not!
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