Comments on: Markets Play Defense Ahead of Earnings Season

By: usphoenix

usphoenix — Thu, 09 Apr 2009 22:56:19 +0000

There are tons of well seasoned students contributing here. How things should be in a rational world.

And I think that’s still true, except the rational world views has to focus on BO and the White House not Wall Street.

The media is going to feed their model. Period. Until……

Well hey, it’s Wall Street’s last hope.

By: leftback

leftback — Wed, 08 Apr 2009 15:07:36 +0000

This morning’s buying was met with immediate selling at 825. That’s really bearish when people are selling the number. I got short at 825. TARPing the life insurance companies isn’t exactly reassuring. I don’t think people realize how much “fixed income” those guys are involved with. For example, GM paper may be about to take a haircut, perhaps more like the one you get in the Marines.

Not sure if I agree with Faber or with Soros here – both, I guess. The materials/energy sector may be solid from here (AA didn’t sell off) but the FIRE/retail sector is not coming back. There is so much more BK in the pipeline that the equity market hasn’t priced in. The credit markets are getting the message. Expect more bailouts…

By: insaneclownposse

insaneclownposse — Wed, 08 Apr 2009 11:06:00 +0000

I hate fading Soros, but if a 56% decline in equities over 16 months doesn’t discount armageddon, I’m not sure what magnitude decline does? I’m in the camp that macro factors don’t matter right now. Eventually they will.
Plus you have a Fed printing program. Nominally, that seems bullish.

By: Rajesh

Rajesh — Wed, 08 Apr 2009 04:49:32 +0000

The current decline is merely a correction. The resumption of the bear market will come later (after Goldman-Sachs raises equity?)