As in, “get back where you belong!” If you were ever in military service, especially many years ago, you had the delightful Sgt. Hartman experience. But, you can’t shake the dude since he’s now doing business as Mr. Market and he’s as mean as ever, just ask Merrill Lynch! Volume was lighter than average but let’s remember it’s a Monday in the middle of summer. [Pssst! I think Yahoo/Finance actually has the numbers right today. Perhaps our undercover agents have finally helped them see the light!] Meanwhile we’ll revisit the ICU and see how ...

MARKET COMMENT

July 23, 2008

Manipulation? Well, it’s pretty plain when the government deliberately releases a horrible Beige Book report early to coincide with BAC’s announcement to buy back 75M shares of stock and maintain its dividend–you know the fix is in. Do you wonder where the money will come from to pay this dividend and buy more stock if not from taxpayers via the discount window?

Do you realize that the Fed can buy GSE bonds [FNM & FRE for example] directly? These outfits can then just issue debt, sell it to the Fed and, presto!, money is created from rubbish? Do you then wonder why gold prices would fall and the dollar rally? I do and it gives me a headache. But not many are paying attention since they’re scrambling over one another to buy …

April 28, 2008

This was a pretty slow day and investors are going to mark time, absent other market moving news, until the Fed makes its next decision. The volume today was ultra-light.

Let’s face it; bulls have seized the tape with “the worst is behind us” line regarding financials and the credit crisis. From the WSJ was this quote attributed to T. Rowe Price portfolio manager Daniel Shackelford, “We established that the Fed was going to backstop the markets, keep things stable and slowly but surely nurse the markets back to health…risk-taking has come back in the market.” So, that’s the bullish spin.

And, things do look better, but hold on a second. Below is a …

“Unless there’s a financial Armageddon everything will be just fine.”
SAM Advisors

Truer words were never spoken. This is why I don’t watch financial TV during the day and am glad not to be a guest saying dumb things.

So, we got some dollar pumping and related commodity weakness as the WSJ suggested that the Fed may cut a quarter point on Tuesday and then stop. C said they’d keep the dividend and everyone got all lathered-up to sell the previously hot commodity sector and buy financials.

Volume picked-up smartly but breadth wasn’t really impressive. [You’ll note Yahoo/Finance’s continuing struggle with math 101.] The action was focused in bigger names but the A/D line in the NASDAQ was negative meaning the heavy volume was focused in the biggest names.

…