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.
Saturday, September 13, 2008
Wednesday, September 10, 2008
More Fun on the Sovereign Nation Level
Some quotes lifted from a chat room - Thanks again, William.
The price of credit default swaps on five-year US government debt rose to a record 17.5 basis points in early trading, according to CMA Datavision.
Although the market for such insurance is relatively illiquid, the price suggests the market believes the US government is more likely to default on its obligations than some other industrialized countries. “The USA is now ‘riskier' than Norway, Germany, Netherlands, Sweden, Finland, Austria, France, Denmark, Quebec and Japan,” said Tim Backshall, chief strategist at Credit Derivatives Research.
How about this one?
From the Financial Times: "Bankers say Russia is facing its worst crisis since the August 1998 default. "
or this one, also from the FT?
Indonesia failed to sell bonds in an auction on Tuesday in a sign of growing worries over emerging markets as concerns heightened over the health of the world economy.
Kind of makes you want to own gold, doesn't it? Too bad the gold market is not reading this - YET.
The price of credit default swaps on five-year US government debt rose to a record 17.5 basis points in early trading, according to CMA Datavision.
Although the market for such insurance is relatively illiquid, the price suggests the market believes the US government is more likely to default on its obligations than some other industrialized countries. “The USA is now ‘riskier' than Norway, Germany, Netherlands, Sweden, Finland, Austria, France, Denmark, Quebec and Japan,” said Tim Backshall, chief strategist at Credit Derivatives Research.
How about this one?
From the Financial Times: "Bankers say Russia is facing its worst crisis since the August 1998 default. "
or this one, also from the FT?
Indonesia failed to sell bonds in an auction on Tuesday in a sign of growing worries over emerging markets as concerns heightened over the health of the world economy.
Kind of makes you want to own gold, doesn't it? Too bad the gold market is not reading this - YET.
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