Comments on: Breakout?

By: me

me — Thu, 30 Apr 2009 14:06:05 +0000

“Mack, Lewis Blame Pay Limits for Executive Departures”

That’s pretty funny, and where did they go to make that kind of money elsewhere? Teaching? Manufacturing? Government? Give me a break.

By: YouthInAsia

YouthInAsia — Thu, 30 Apr 2009 13:12:42 +0000

Finally deciding to turn bullish, been bag holding SRS since 35.

By: gloppie

gloppie — Thu, 30 Apr 2009 13:12:24 +0000

dow 3000

By: leftback

leftback — Thu, 30 Apr 2009 11:41:45 +0000

Jack, with markets rising around the world today as I write this morning from Philadelphia, it is easy to see that once again all is well, the bears have been vanquished for all time, Helicopter Ben is out distributing currency to grateful citizens and Tiny Tim stands tall, astride the land like a colossus. Yes, it is Morning in America.

On the other hand, if we were really in a strong reflationary recovery you might wonder why gold is down this morning, why the shippers have been weak for days, why commodities led the bounce in stocks but have since reversed their advance and why there are signs of growing stress in the municipal bond market and several other areas of the credit markets. On the other hand, LB is finally happy that he is short the 10-year.

This could turn out to be the ultimate pop and drop.

By: JasRas

JasRas — Thu, 30 Apr 2009 10:52:35 +0000

We are in the “bizarro” world. Bad is good—’cause it can’t get worse than that! I love the logic used when we want stuff to go a certain direction.

I hope people are truly savoring this week and the markets resilience. I don’t know what else to call it- won’t go up, won’t go down… 875-880 on my point and figure is a tough spot to get through–buy hey! Last day of the month–let’s go for it. If it breaks through the next upside resistance is in the 910-920 range depending on which size box I use for the chart.

I am not a bear, but I am a realist and I do not buy into this second derivative stuff. Look if things are getting worse more slowly, isn’t the takeaway that things are still getting worse?! In physics we learn all things have something called a terminal velocity. You throw a body out of a plane–it is going to reach a maximum speed at some point that it cannot surpass. Now, just because it is no longer accelerating does not mean it is slowing down!

Remember- end of month is always a little strange, after April 15th, we enter into what is typically a seasonally week time for the market, we have had a 9+wk monster rally with little rest, volume is dropping. Despite great internal numbers (and they were great) the volume was very low compared to the last couple months.

Will this stop at 875? Dunno, but it needs a rest soon. So don’t be surprised

By: d4winds

d4winds — Thu, 30 Apr 2009 06:29:19 +0000

re “Since when does a sitting U.S. President place a privately held company into bankruptcy? Yes, …I know taxpayers have a seat at the table via a previous loan to Chrysler. But I wish our government would let any Chapter 11 filing remain the province of the courts…”

Being the only entity anywhere willing to have extended Chrysler capital to avoid imminent and certain BK in December and being further the only entity anywhere with any potential wherewithal or desire to extend yet further funds for continued operations beyond April 30 makes the entity in question have more–far, far more–than merely “a seat at the table.” The blogger seems offended by actions current and potential that, had they been undertaken by a private entity, would have been deemed not merely necessary but long overdue and quite salutory.

By: Simon

Simon — Thu, 30 Apr 2009 05:31:26 +0000

Thanks Jack, For now I’ll stay long gold and oil only. Unfortunately my embedded long is housing and construction but I’m a very low budget operator. I may try to sniff out some cigar butts soon though.

By: Mannwich

Mannwich — Thu, 30 Apr 2009 04:27:28 +0000

Nicely put, Jack. Maybe I’m insane, but I simply cannot fathom being anywhere close to a real recovery until we get off the bailout treadmill. The minute feds stop backstopping everything, does it all fall apart again? And if that means they won’t stop backstopping everything, then how is this recovery real? Isn’t it merely playing the old pre-shot clock Dean Smith “Four Corners Offense” and delaying the inevitable pain all around?

By: Trade prep: all quiet on the month end edition « Mr. Unexpectedly

Trade prep: all quiet on the month end edition « Mr. Unexpectedly — Thu, 30 Apr 2009 04:26:25 +0000

[...] Jack McHugh is out, and does not disappoint. Man, someday I’ll link like that. [...]

By: panskeptic

panskeptic — Thu, 30 Apr 2009 04:16:54 +0000

The laws of economics include the following: Milton Friedman and Ronald Reagan-style economics inevitably lead to prosperity for the lucky few, a hollowing-out of the middle class, and misery for the poor. After a few years, the whole thing blows up in catastrophe. Always.

It’s happened this way in six countries so far: we are only the latest. The bailout mentality follows Milton Friedman as surely as sunset follows sunrise.

Republicans who mutter about “banana republic” have only themselves to blame for turning us into Argentina, instead of the other way round.