Wow, what a difference a day makes. Maybe the Federal Government can bailout Lehman now and whoever else makes poor decisions and is the casualty of bad management? The Correct Call thinks Uncle Sam should just guarantee the value of homes and make the mortgage payments for all of us? How does that sound?
Since we are now officially the United Socialist States of Bailouts, why not give investors a hand too? After all, we are the ones that really make this country work. Shouldn’t the real victims in all this, “We the People” be the ones getting the money from the multi-million severance packages and $200 billion bailouts? These people running Freddie, Fannie, Bear, Lehman… should all be investigated for criminal actions and intent, not getting millions of dollars to step aside.
We realize people make mistakes, but to us, this walks like negligence, smells like negligence and quacks like negligence on the highest order of greed. The Justice Department should investigate and “String em’ up” if they are guilty. That will get the message across. Ohh and any Politico that had his/her hand in the cookie jar (from what we have read there are many) and helped this disaster unfold, should be swaying in the wind two times.
Now on to the markets, Yesterdays reversal really damaged our momentum indicator. Maybe it got caught up in the atom smasher thing? In any case, it does not look good and it is likely that we are going to test the lows established in July. The NYSE chart is a disaster and the rest have their angles of decent falling off a cliff. We better hope we hit the lows and bounce or we are looking at:
The S&P at 1,150
The NASDAQ at 2,000
The Dow at 10,500
And the NYSE already looks like it’s on its way to 7,500.
Our technical analysis of industry charts point to Technology, Industrials, Transportation and Chemicals as sectors to avoid right now. Style wise, growth charts aren’t looking so healthy, especially small cap growth stocks as its chart is now just turning over.
Here is a list of ProShare ETFs that rise in value when the underlying index/sector shrinks in value:
UltraShort Industrial (SIJ)
UltraShort Semiconductors (SSG)
UltraShort Technology (REW)
UltrShort Russell 2000 Growth Index (SKK)
Just keep in mind that these ETFs move 2 times the performance of the underlying index.
Our subscribers will find a baseball team’s worth of stocks we feel are possible short candidates in today’s Investment Calendar.
If you don’t understand the Toby Keith reference
Here is the Video.
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