Wednesday, September 17, 2008

Mid-Week Views of a Bearish Market

* Getting Short When You Can - Short sellers kept it up until the very end of the trading session; after midnight, we're back to restricting naked short sales.

* Risk Aversion Gone Wild - The yield on 3-month T-bills dropped to .04, as investors sought a safe haven. The same desire for a safe haven launched gold (GLD) over 10%. Note how the U.S. dollar is once again under pressure; if the government assumes the bad debt of banks, it stops looking so creditworthy itself. Meanwhile, long-dated muni bonds hit a record spread vs. Treasury bonds.

* Continued Weakness - Across the NYSE, NASDAQ, and ASE on Wednesday, we had 361 new 20-day highs against 3631 lows. 52-week lows among the three exchanges dropped to 1999 from 2225 on Tuesday.

* What Went Wrong - Kirk reviews articles on Wall St.'s woes and makes the case against bailouts.

* A New RTC? Lots of buzz about the government taking over bad bank debt; Abnormal Returns finds links and other perspectives on the credit dilemma.

* Emerging Woes - As bad as we have it, China and Russia's markets have had it worse; Trader Mike updates his links.

* The Trauma of Loss - Stuart Schneiderman offers thoughtful views on dealing with catastrophic losses.

* Looking for Support - Market Rewind offers an interesting perspective on SPX support.


IDkit aka Ana said...


Pity the Forex Expo was too far for me to attend.

However, your delivery on video at MoneyShow is loud and clear which I would like to share at :

Brett Steenbarger, Ph.D. said...

Thanks for passing that along, Ana!