Saturday, September 13, 2008

The week the was

The week that was? How about the week that is thankfully over?

Everything points to a bear market - except, of course, price action Thursday and Friday. Morning drops and afternoon rallies are good things. Then again 8% of the market hitting new 52-week lows on a day when the indices rallied big is not.

And how about oil stocks rallying Friday as oil itself dipped under par? Were oil stocks - and gold stocks - so disconnected from their respective commodities? We bought both sectors in Friday's newsletter, pretty much at the open and probably would have sold it at the close. Too bad we don't run a day trading service - one called "dead cats R us."

Well, its the weekend and I've got kids to shuttle and chores to do so I'll leave it there. This stock market scares me and while I won't forecast it or even write about it, a black swan is always lurking out there to poop on our heads. The market is severely fractured and AIG was the latest company in the confessional booth.

Where there's smoke there is fire and there is a lot of smoke out there now.


Doug said...

It has been wild these last two days hasn't it?! huge gap downs and then huge run ups taking it well above the previous days close(at least for thurs). I am short when friday gapped down at the open I said "ok, here we go, its not gonna do what it did yesterday, it can't do that two days in a row..." unbelievable.

Doug said...

you called this one with Lehman etc. good job Mike!

Michael Kahn said...

where there's smoke there's fire