Market Talk / July 20 - 26

[Spaf]

Market Talk
Sunday Edition
July 20, 2008​

General Commentary:

To be or not to be,,, is the question. Do we invest or continue sitting on the sidelines? Last week was encouraging, the DOW was up about 3.6%, the S&P 1.7%. But, is this for real, or is it just a trap? The DOW was finally able to hold onto some of it's gains, earnings were good and housing starts showed an up tick. But do we have something that can be counted on?

Remember, crude oil was down from 145 to 129, because of a percieved decline in demand. And, financials were up because actions were promissed to correct major deficiencies.

Were the shorts to blame. Or, were the shortcommings to blame. Or will just any old scapegoat do!

We don't have a bullish trend, but we due have some encouragement, and more earnings are due this week. Maybe, just maybe it's time we said....... "show me the beef".

A look at the chart(s)
The S&P500 [$SPX] Daily
Large Caps

Charts courtesy of www.StockCharts.com​

Looks encouraging, but will it hold? The P-SAR is showning the making of a Bullish trend, but the same happened last June, which was a trap. If the P-SAR holds, and it respects the moving average, we could have something to consider.

Have a good week!​

But, be careful out there!​

 

[RPM]

Any thoughts about this article? (Tu 7/22 on naked short sale conspiracy??)

http://marketclues.blogspot.com/2008_07_01_archive.html#1197866517501857909

Thanks

 

[nnuut]

Should NOT happen!!! CROOKS!:nuts:

 

[luv2read]

Any thoughts about this article? (Tu 7/22 on naked short sale conspiracy??)

http://marketclues.blogspot.com/2008_07_01_archive.html#1197866517501857909

Thanks

I think the quote below from the article is on target. Timing is everything - oil prices started escalating 11/07; they eliminate short sale uptick rule 2007; many other changes during the LAST YEAR of this Administration.

Since the government last year eliminated the last vestiges of the short sale uptick rule which prevented massive short selling on downticks, it has been clear that it favors shorting stocks over buying them long. Actually, the head of the SEC, Christopher Cox, in an emergency order last week prohibiting naked short sales on a list of financial institutions, implicitly declared that the government did not intend to enforce the laws on the books prohibiting naked short sales on other stocks....
In other words, the government has announced to all the world that it prefers selling of stocks short to buying by allowing shorts to create an infinite number of phantom shares and to sell them short on all of the stocks not on the "protected" list.

Another simple explanation and one we have no direct evidence of its validity is that there are very wealthy powers "behind the throne" which are looking to buy ownership in US companies by driving the price of their shares as near to zero as they can. Whether those buyers are American or foreign, such a campaign would undermine the entire nation. If the politicians are in on the deal, they are guilty of treason. The more immediate question is whether the two heads of the current single party (plutocrat) Presidential election campaign are part of the conspiracy or not.

 

[luv2read]

The drop in oil prices has of course affected energy stocks and caused them to drop as well. IMO today we're seeing the effect of that drop in the market, and once a target "bottom" for energy stocks is reached, buying will start in both energy stocks and commodities. Watch for the price of oil to creep back up. Energy stocks should give the market another short bounce but the oil price increase will make it short-lived - we'll get another leg down. This same cycle happened last quarter.

 

[Spaf]

See you on next week's Market Talk!​

Spaf​

 

[nnuut]

The drop in oil prices has of course affected energy stocks and caused them to drop as well. IMO today we're seeing the effect of that drop in the market, and once a target "bottom" for energy stocks is reached, buying will start in both energy stocks and commodities. Watch for the price of oil to creep back up. Energy stocks should give the market another short bounce but the oil price increase will make it short-lived - we'll get another leg down. This same cycle happened last quarter.

When investors drop out of energy stocks what do they do with their money? Possibly to Bonds or to other investments that are more promising, right?