Well now… wasn’t this an interesting day!
We have a LOT to cover tonight so be sure to come back tonight for the full wrap up, you won’t want to miss it.
Want to know what got the market so excited today? Some people think that it is OK for financial institutions to keep losing money, as long as they keep getting additional money injections. It is akin to having diarrhea and eating at the same time. In one end and right out the other.
So Lehman (LEH) and UBS (UBS) can keep losing vast amounts of money out the bottom, and just as long as they keep new money coming in the top end all is well. Do you see any logic in that? I hope you don’t.
Check back tonight for the entire story, and all the charts.
P.S. - Your tax dollars… we now know that they will be used to "cushion and comfort" JP Morgan (and Bear Stearns) in the Government bail out. Yes, your money will be used to pay off the debts and failures of the companies that took your money in the first place (i.e. mortgages). Treasury Secretary Henry Paulson has picked your wallet.
"What’s in your wallet"?
Watch out… he is reaching for another wallet now !
4 Comments
April 1st, 2008 at 7:26 pm
Chuck,
How do you think he made all his money at Goldman?
Picking the pockets of investors.
Today’s romp was basically short covering and momo
traders who saw the least path was up today.
John Murphy of Stockcharts said in tonight’s Murphy
Commentary; wrote the DOW could see it’s Feb.
highs. Which is only at 138 and change.
Volume today was nothing to write home about;
considering we had nearly a 400 point day.
Greatly anticipating your Commentary.
Regards,
Noel
April 1st, 2008 at 7:59 pm
It’s an absolute travesty and since we (the American people) in general are a nation of sheep are just herded to the slaughterhouse without a yelp.
Marketwise, IMHO I think the bulls might have the upper hand for at least little a while even though the volume was nothing to write home about nor was the news about LEH and UBS very compelling. The market is as Spock might say “illogical” but whatever the case it seems some trends may have broken down a bit but the long term trend is still down.
I’ve hedged all my positions and will await the outcome of the mother of all resistance level for the DOW at ~10735ish level. Until then I’m keeping a low profile.
April 1st, 2008 at 9:05 pm
As a final note, I believe the market is going to fail the that next retest of the 10750 level because the market can’t be that devoid of reason. Can it?
April 1st, 2008 at 11:18 pm
John -
Maybe it can. The market can remain irrational longer than we can stay solvent. Be careful.