Market Soapbox 07/16/08

WEN, a bounce, DJIA +277 on higher volume with sterling internals. All UP BIG cept DJUA, XAU, XOI.

Bonds CRUSHED 10 yr yield +13bps 3.95. $ up vs 1.5817€ & vs 105.129y, WTI -3% $134.47, gold -1.5% $962.7; TED Spread down -5bps 1.41%

SP500 open 1215, dip 1211, rise to close 1245. NDX open 1799, dip 1786, rise to close 1844.

Wells Fargo earnings & revenue topped expectations and raised dividend +10%, sending shares +32%...

under the sheets net income declined 23%. (We will expose Wells later)...

2nd day with crude slumping another 3% on slowing concerns. American Air "beat expectations"; the airline index XAL +18%;

under the sheets... fuel +47% as AMR lost $1.4 billion and Delta lost $1 billion.

All this "good news" set up the suckers bounce we have been looking for as SP Financials Index +9.5%, a record.

Do not be fooled, CPI stagflation is raging, the Misery Index at a 15 yr high...

the longest profit slump since 2002 continues and the financial collapse is just beginning.

Take this headfake as an opportunity to sell to the suckers and buy cheap puts or contra ETF's (SRS),

before the hammer really slams down on these clowns.

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

Comments