Market Talk- February 2008

[Birchtree]

I sure can - my daughter is pleased to own shares in Ambac as well as 49 other toxic waste positions. And ABK recently paid a dividend which she reinvested. Maybe life will start to improve in the financial sector. We'll see what 350z can dig up.

 

[CountryBoy]

Ambac bailout? Why do I hate that word bailout?

I hate the term for several reasons. It's our tax money and I hate to use our tax money to bail out greed and stupidity. What the heck happened to personal responsibility? Oh yeah, that's why some folks want the nanny state candidate to win, then they can blame everyone else and punish those of use who play by the rules and are successful. Sorry for the short rant. Kind of a touchy subject with me. Folks need to sack up and take the consequences of their actions. OK I'll shut up.

Ya'll have a good weekend.

CB

 

[Silverbird]

It's the banks bailing them out, they are yes saving their own behinds but it's NOT taxpayer's money. Don't blame the Govt for this one, though you can blame the Govt for letting them put out these garbage CDOs all you want.

 

[Tomncath]

It's the banks bailing them out, they are yes saving their own behinds but it's NOT taxpayer's money. Don't blame the Govt for this one, though you can blame the Govt for letting them put out these garbage CDOs all you want.

But where are the banks getting the money from?

http://federalreserve.gov/releases/h3/Current/

 

[Bullitt]

For those that wish to follow the IBD method of buying stocks, this is a textbook example of a base. Yes, it's intraday and yes, you should be looking for stocks that take a few months to base but it's still a good chart to reference if you are a technical trader. In other words, replace the time frame in this chart with months. (Show-Me, thanks for the chart, I wouldn't have noticed this example setup had you not posted it.)

Textbook breakout from the base that took all day to develop. Most important, good buying pressure around the 1330 level. Note the volume surge on the upside. I like the little juke down that the market pulled right around 1515 hours.

Of course, a technical trader should care less about what news caused the daily breakout since technical trading is purely unemotional.

Technical Disclaimer: Past performace is no indicator of future price movements.

 

[hessian]

Hey Bullitt,
Sure would like your opinion on my AcctTalk post, today, at
http://www.tsptalk.com/mb/showthread.php?t=5330

...more importantly, see the charts & analyses for today, Feb 22, posted at: www.slopeofhope.com (where I got the info from).
I always appreciate your opinions and perspectives.
VR

 

[Bullitt]

Slope of Hope, I only read him once a week or so, but he posts some good stuff. Sometimes he's off his rocker. For example he believes the charts are the end all be all and that they predict a complete cataclysm in the near future of the Dow.

It's always good to keep an open mind in this game. Watching how a guy who only plays the downside of things feels about the market is another good tool to put on your belt.

I don't remember anyone saying with any certainty that July and October were going to be market tops until after the fact. Most everyone got caught off guard by the uber bullishness in the air. Today it's just the same, but on the opposite side of the spectrum.

Something to think about Hessian.... That was a pretty strong intraday move up today and we haven't seen a retest yet. (Or have we?) Everyone wants that pullback, but I doubt most will be able to stick to their guns at the 1275 level if we happen to play touch and go. (Don't worry, it won't be that easy anyway.) Emotions run higher when there's the possibility of losing $$$ than gaining it.

 

[Bullitt]

In case you're wondering which pasture the herd is stampeding towards, take a look at this WSJ headline. I'm sure there's a correlation between the show, Fast Money and the options market. There are always going to be sharks attempting to lure the inexperienced into the world of big, fast, easy money. That way it will always remain easy money for the pros at the cost of the inexperienced trader.


NYSE Short Interest Hits a Record

By PETER A. MCKAY
February 23, 2008; Page B6

Short interest jumped to a record at the New York Stock Exchange in the first half of February as recession fears weighed on investors' minds.

 

[Silverbird]

But where are the banks getting the money from?
http://federalreserve.gov/releases/h3/Current/

Oh, I see. It's the interest rate drop, let the banks borrow Berneke hat trick. :worried: May be better than just tossing $ into the system, IF the banks don't start playing high stakes roulette again. I prefer this hat trick to lowering interest rates, which encourages dumping of $, and to borrowing money to send out mini tax refunds, but no balancing tricks are left that can't slice back.