Monday, November 24, 2008

Top Five Twitter Tickers

RIMM will take months to repair, and I have no love for their products.
Google barely budged today, and as much as I love the company, the stock is shit.
People who won the C game bailed early, but it might push to 7.60 before collapsing in half.
Another terrible tech stock. Macs are lame, Jobs will die, Vista will PWN U!
SKF gets more attractive each day at these levels, but the tide has yet to turn.
Long term caution is advised as this is a deadly rally for optimists and bottom pickers.

3 Ratios To Watch

American Equities vs. Bonds are rallying in a downtrend, but approaching resistance.
The stabilization of Miners vs. Gold reduces deflationary worries.
Relative to gold, the 30Y is bouncing off long term resistance, but remains in an uptrend.
Signs of stabilization are emerging as these ratios exhibit mean reversion.

If volatility can stabilize, we may be setting up for a meaningful uptrend in equities. Nevertheless, it is still too early to commit anything more than a handful of dollars to equities overnight.

Monday Market Mumblings

The market is showing signs of internal strength.
There are more bullish stocks above the 50dma with generally lower volatility.
Advancing volume is much heavier than declining volume.
Judging by these indicators and recent price action, the tape is saying up, up and away. We are still in a long term bear market, but there is no reason to short these rallies yet.

On a side note, those fuckers at Citigroup are my new heros. I want to fuck things up so badly that the government has to hand me billions of dollars, and yet, maintain a multimillion dollar salary. They just don't teach that kind of shit at community college; long live the destroyers of wealth, for they give it value.