Yesterday was quite the day, down 170 to start the day, only to finish the day up almost the same. Forget about the 'why' and leave that to the idiot market guessing inhabitants of the pom pom network.
The facts are that we had a 100 pt rally in the last 15 minutes yesterday. Here are the internals yesterday on a 165 pt up day on New York and almost 30 pt up day on the Naz.
NYSE advancers 1328
NYSE decliners 1698
NYSE new highs 37
NYSE new lows 110
Nasdaq advancers 1310
Nasdaq decliners 1567
Nasdaq new highs 68
Nasdaq new lows 140
So you tell me, is the patient is healthy or sick? Old timers would call this tape painting, but it sure makes for good reading on the nightly news. And we need that so we move on to more important issues like Lindsay Lohan's relationships. America's Got Talent and rest of the fall lineup on brain dead TV.
I have been warning you about the panic and the chaos that would be occurring on CNBC as the market slowly but surely deteriorates. I am not trying to put them down for it is not their fault but I am reminded of the phrase, "the only thing worse than someone who knows nothing is someone who thinks they know something". It is getting almost comical as the legions of denial(ists) slowly realise what is happening.
Notice how even some of the polyannic pretty faced anchors are getting spells of nerve to challenge a pundits guess that the financial sector is cheap. In the least it makes for very funny TV
The pom pom network continues to cart out all these purported experts, or as Bill Fleckenstein likes to call them "dead fish" who continue to claim to know something. The events of the last 12-18 months should be unambiguous evidence to the contrary. You notice the downgrades of stocks like Lehman and Washington Mutual now? Kinda like telling someone in the path of a disaster that he/she should get insurance. Absolutely nothing like an Ivy League education to truly prepare you for the challenges of the global marketplace. Stunning, truly stunning.
I want to touch on Salesforce.com ticker CRM. It will be in the S&P as of the close today. We could experience some more index fund buying but I will be looking to add to my short towards the end of the day as the boyz who have put off buying to the last minute are forced to do so. The stock has levitated under this backdrop and I expect that to end shortly.
Good speculating to you all and never forget that "an investor is a speculator who made a mistake and will not admit it".
Long 1 unit Ultrashort Lehman 20yr treasury ticker TBT @ $61.70 stop at TLT $98.41
Short 1 unit Fedex ticker FDX @ $87.25 stop $91.02
Short 1 unit Int'l Bus Machines ticker IBM @ $129.05 stop at $126.36
Short 2 units of Apple ticker AAPL @ $178.05 stop at $177.76
Short 2 units Salesforce.com ticker CRM @ $56.05 stop at $60.62