JP via RSS
Turnaround Thursday? Sell Gold for Dollars
Thursday 17 September 2009, Dow 9854.58
Right now we are seeing an epic battle between bulls and bears.
Pre-market futures today went below Fair Market Value for yet another down opening.
When they finally stop doing that, it may well mark the top when almost everyone is convinced Mr Market is going higher, and almost no one wants to sell.
Never confuse a bull market with brilliance or a bear market with stupidity.
Downward openings from insider selling were often hidden later in the day by running and ruining the shorts to cover at higher prices. This may mesmerize most. It may set the market hook with the liquidity lure of indefinitely higher prices, no matter how weak the fundamentals.
Sometimes it pays to ignore the wide and easy path to destruction by following our emotional hunches and choosing the narrow gate to abundant life. Little do we recognize that our thoughts are not our own, but those of mass media and the professional opinion molders.
Goldman Sachs raised its opinion on Textron before earning investment banking fees for $600 M of 6.2% and 7.25% TXT notes. GS is reportedly distributing high-risk shadow banking conglomerate Textron to asset management clients after the stock rose from 8.50 to 20.99.
We prefer to buy low and sell high.
Inexperienced unemployed retail investors are again day trading with fewer credit cards and lines left. Maybe they will support themselves, although the record shows the majority of daytraders lose.
Hope springs eternal, the triumph of optimism over experience.
The 55% March Spring-Summer 2009 Standard & Poors market rally decapitated most bears. The 48% Winter-Spring Dow rally did similar in 1930. This cannot be a good omen for the longevity of this Bear Market Rally.
We’re inclined to agree with UBS Art Cashin this market may be ahead of itself.
