Despite being the second longest selloff since the March 2009 bottom, there has not been significant emotion to this selling. Aside from one day I can't recall much panic at all. Do we 'need' panic to create a bottom. Not always. But it sure helps. As we sit right above the 200 day moving average (yet again) another rule comes to mind - the more times you test a level (support or resistance) the more likely it breaks. We have been testing this 200 day quite often the past few weeks. I still believe it breaks, and we finally get our panic and people throwing in the towel. Then I'll be interested in a tradeable intermediate bottom.
This morning's consumer spending numbers, in a word, suck. But as gas prices tumble, we should see a rebound in the coming months. Also auto production should bounce back August-ish so for once I might be somewhat more bullish than others ;). At least for a while. [Obviously this assumes Greek gets its bailout and the Greek people and government are happy to bail out German and French banks]
Talk in D.C. is the Dems want another stimulus program as part of the debt ceiling negotiations. The patient needs its constant steroids, and the last batch is wearing off.
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows