I’m just adding to the same post today. The comment has a part of an article that suggests the sell off in LEH was due to "reverse window-dressing" and is a favorite of short sellers. I don’t buy it, but we’ll have to wait until the truth comes out. Today was a non-event, in my book. It was a day to trade a couple of individual stocks while the indices traded in a very tight range. I’ve seen weaker days, but there is no pronounced fear in this market, either. We’ll have more later!
Update: OK, has everyone gone on vacation, except me? Or are we holding our collective breath until this market breaks one way or the other?
I have no solid facts for why this is happening, but it’s got the market a bit spooked:
LEHMAN MOVES OUT TO A NEW 52 WEEK LOW, BREAKING LOW SEEN IN MID-MARCH WHEN LIQUIDITY RUMORS HIT LEH AFTER THE BEAR STEARNS BAILOUT; LEH AT LOWEST LEVEL SINCE MID-2000
9 Comments
June 30th, 2008 at 3:30 pm
NEW YORK (MarketWatch) - Shares of Lehman Bros. Holdings fell more than 9% in late trading Monday, as a market nervous about credit-related issues at banks took aim at the embattled firm. Lehman has been a popular target for short-sellers in the last few weeks after reporting $3 billion in write-downs for the second quarter, its first quarterly loss since going public in 1994. A report in The Wall Street Journal Monday also speculated investors may be selling off Lehman stock on the last day of the second quarter in order to avoid listing it among company holdings. “Some are calling this reverse window-dressing, as the bears mark down their winners (shorts), but the trend and mood in Lehman is coyote ugly!” market analyst Jon Najarian wrote in a note at Optionsmonster.com
June 30th, 2008 at 6:01 pm
Helloooo Lisa,
Lackluster doesn’t even come close for today’s
trading. Volume for the start of a four day week;
was not too bad.
I imagine portfolio managers ditched their Big
Winners and Hard Losers today. Yes, reverse
window dressing. They want their holders to
see the good and not the bad; as we enter the
3rd quarter.
Looking for a bounce the next couple of days.
Market is waaayyy Oversold on the S&P oscillator.
Current reading is a -9. Normal Buy Rating is
when the oscillator hits -5.
Picked up 1000 SSO at 61.37. If up nicely
tommorow will do the Fade Job.
BBT is looking juicy. May added onto
my current position at 19-20.
Hope you enjoyed a fun weekend!
Best,
Noel
June 30th, 2008 at 7:04 pm
Lisa,
Just my opinion.
Shorting the Indexes at their current
levels isn’t too smart.
SDS & QID are Bigtime Overbought.
Sleep Well,
Noel
June 30th, 2008 at 8:00 pm
Repsectfully…it will take more than a technical indicator to get the S&P and Nasdaq to meaningfully bounce at the current state. Things are just too fragile. In my opinion, for any significant rally (albeit a bear market one), you need more catalysts. A “good” jobs number, oil retreating, financials stabilizing on a shred of positive news…something. Catching falling knives may not prove very smart either.
June 30th, 2008 at 8:22 pm
Steve,
You maybe right.
Just performed a short term trade.
Yes, it is aggressive, but that is
what I do.
Trade Well.
Noel
June 30th, 2008 at 11:15 pm
this market is really tough to trade. as usual, i am in a lot of cash. my DUG position continues to fight just above my stop out position. holding DUG is like having another job.
I did enter a position in FXP today at $84. Still looking to find another position to enter, but can’t find anything that gets me excited.
good luck to all…
June 30th, 2008 at 11:25 pm
FYI…A leading financial analyst, Dick Bove, interviewed today on CNBC and discusses the financials. He believes the financials are the cheapest he has seen in 20 years. The link to the interview is below..
http://www.cnbc.com/id/15840232?video=781415162&play=1
June 30th, 2008 at 11:32 pm
Dave: You’re kidding, right? How long have you been on vacation?
We have raked Bove over the coals for his “generational buy” call on the financials. He has the Circus Barker of the Year award from Chuck. Bove is a clown, er, a misguided individual.
July 1st, 2008 at 10:08 am
Lisa - Yes….of course I am kidding. I didn’t pull Bove out of the air. I figured I would give you a free chance to take another shot at him. It’s called, “a layup”.