Barron’s Mike Santoli notes the market has rallied for two days despite bad economic news, but some indicators that market has bottomed are still missing.
12/8/2008
In any great organization it is far, far safer to be wrong with the majority than to be right alone. —John Kenneth Galbraith
Asian currencies continue to sell off vs the $ on the heels of the news yesterday that South Korea said they will look into hot money inflows stemming from the $ carry trade and the Bank of Indonesia said they are looking into the foreign buying of bills. This follows the news a few weeks ago that Taiwan was limiting foreign deposit holdings and Brazil was taxing foreign inflow transactions. As I mentioned yesterday, we may have reached a short term pain threshold in terms of $ weakness and foreign countries are fighting back as they certainly won't wait for...
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December 8th, 2008 at 11:58 pm
The recent action sure feels like “traders” catching whatever emotional wave that the daily news brings. I don’t get the feeling that there is much “investing” going on at the moment. Considering the huge losses in the last 12 months, any bounce is likely to be substantial. Substantial enough to look like a market bottom.