Wednesday, June 4, 2008

We know its a bear, Michael

There are only so many ways I can write about the stock market being bearish before even I get tired of it. I know my editor is pushing me every week to come up with a new angle but frankly now is just the time to watch all the groundwork come to fruition.

We are mostly short in the newsletter. We hate financials and think energy is done (for now). Materials are finally getting hit (except for those lovable fertilizer stocks).

That's all I have to say, post column today. Blogger extraordinaire Barry Ritholz ran a black swan toon the other day and I'm going to start looking into that concept for real.

Sleep well, kids.


Anonymous said...

For what it is worth, I've had The Black Swan on my mind for every "head fake" thru the bear rally. Ultimately I could see no difference from past market periods except my lack of patience. I will be very interested in your posts/articles on this topic.

Anonymous said...

Sir, any ideas on Nasdaq? Seems it resist to come down!!! Should it be another excuse for the bulls?

Kind regards,
A loyal reader

Anonymous said...

Dennis is a good guy.

Quick Takes Pro said...

The Nasdaq is on everyone's radar these days yet from my point of view the resistance level and reversal I wrote about a week ago are still intact.

Yeah, today was a rough one for me but I rode out the rally in bonds and that felt just as bad while it was happening.

I would not call Nasdaq rising an excuse for the bulls but it is what it is. Fortunately, I am not short any tech.

Quick Takes Pro said...

Dennis needs a shave and a haircut.

But grooming aside, it was a really good debate and he made excellent points. He is right, wall street does make mountains out of molehills but there is a point where it just may be right.

Someone tell me why a 5 buck spike in oil did not quash a stock market rally? Something is not right in the economy and the market as traditional relationships are not working.

Anonymous said...

It must be that damned black swan.

Anonymous said...

Well...the brainstorming continues, even though fooled by the market yesterday!