First the tidbits
- Fitch downgrades the State of California
- Pipelines attacked in Nigeria
- Helicopter Ben gets defensive over his role in BofA/Merrill (too defensive?)
- from a chat room, posted by Isam Laroui, CMT
There's a blog (http://newsfrom1930.blogspot.com) that posts a selection of articles from the WSJ from each week 79 years ago. One bullish article from June 1930 made the following point:
"Historically there has been no case in this country since 1900 when business failed to turn upward the year following a depression."
The implication was that, since the depression was over as almost everybody thought at the time, business was bound to do better sooner or later. A 3-year depression was not even considered possible.
Back to the present: Pretty good stuff, right?
And on to the followup:
Today's big rally does not change my view that the market has probably topped. But as I wrote yesterday in the column, I was not about to "call that top" due to ongoing unstable conditions in the markets since last year. The TED spread is back to normal but both the T and the ED are still at near zero levels. That is not what I'd call normal.
Volume was rather light on the day, too, so I'll just take it as another black eye on the way to winning the fight.