Market Talk / May 21 - 27 II

[Rod]

The shooting incident on Capitol Hill may drag the markets.

 

[Birchtree]

CNBC says it's been the small investor doing all the buying today - most institutional many is staying on the sidelines (cluck, cluck) waiting for the FOMC minutes to be released Wednesday. If it's good news the rush may be on - watch out for the stampede of hoofs (snort, snort).

 

[Rod]

The shooting incident on Capitol Hill may drag the markets.

Ahh, it turned out ot be nothing. Wasn't even a shooting... it was "construction noise"... or so the gov. claims.

 

[robo]

AHEAD OF THE CURVE
86-ing the '87 Theory
Monday, May 29, 2006

Too many people see parallels with 1987 today. It's the differences that matter.

The following is an "Ahead of the Curve" column published May 26, 2006 on SmartMoney.com, where Luskin is a Contributing Editor.
The S&P 500 has lost 3.9% since the high achieved on May 5. And already the bears who have gotten it wrong ever since the bottom in October 2002 have proclaimed "I told you so."

That's right. A measly 3.9% drop — following a 70.6% gain from the 2002 bottom. Couldn't it just be an orderly correction? No! The bears are calling it the precursor of a global recession and some are even warning that it will lead to a stock market crash like the one in 1987.

The bears claim that all the conditions are right for a crash. Rising interest rates. Rising inflation. Falling dollar. Rising trade deficit. Brand new Federal Reserve chairman. All these things, they say, are just the same today as they were in 1987, before the biggest stock-market crash of all time. The bears are saying it's a case of "ominous parallels."

I'll admit that there are some similarities between now and 1987. But the bears aren't telling you about the differences — and in this case, the differences make all the difference.



http://www.trendmacro.com/a/luskin/20060522luskinSMC.asp

 

[robo]

Birchtree,

Henry is now 50% short.

May 26, 2006

Covered 25% at 11,260
50% Short at 10,900


http://www.safehaven.com/archive-175.htm

 

[Birchtree]

Robo,

An excellent article - finally something positive. This correction to me feels more like 1998. Looking back at graphs: on Aug.31,1998 the DJIA dove 512.61 points or 6.37%, and recovers the next day with a 288.36 point gain. This was all due to the Aug.26, 1998 Russian ruble crises where they abandoned their support of their own currency. The Dow then went on to higher highs. The Dow hit 9000 on April 16, 1998. We may be entering a period of increased volatility for awhile - and I'd actually welcome it to participate in some trading of individual stocks for the rest of the year. It's really hardto do that with mutual funds unless one can turn $40,000 a point. Good trading next week. Take care.

Dennis - permabull #1

 

[Spaf]

Will be closing thread, and starting a new one for next week!

Have a good Memorial Day!.................

...................Spaf