State Of The Market

A few market signs for the lost. The following precipitous graph is an example of the impact the financial crisis is having on the real economy.

The BDI indicates how much shippers get paid for carrying freight. Due to the unwillingness of banks to write letters of credit for merchandise, shipping is mired in a death spiral.

US Bonds continue to outperform US Equities.

The NASDAQ continues to hold on by the skin of its teeth, but with the risks so high, holding equities overnight is a game for people much braver than I.

Less NASDAQ stocks are above their 50dma, but if the index doesn't collapse tomorrow, we could see a short squeeze.

Nevertheless, the NAMO is a tad overbought, so I expect choppy trading for a day or two. Time to take photos, sculpt, and learn to play music.

The market is still volatile and thus provides great opportunities. On the other hand, my trading costs are starting to rise as I get whipsawed and suffer prolonged cognitive dissonance. I'm trading with small amounts, trying to find/keep a rhythm, but nothing seems quite clear after today.

P.S. Has anyone else in the blogosphere suffered ISP problems during very volatile market days?

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DUG doesn't look ready to rise. I'd rather be long DIG.

F is headed for nationalization or something equally disastrous for equity holders. It may double on news of Henry Ford being reanimated for a LBO.

Hooray, FLR is establishing an uptrend. Needs a pullback.

GE is a financial, mired in resistance, and in need of a bailout, I would sell the stock and buy a blender.

WFC is a bank whose value is determined by the velocity and position of electrons. Stay away.

I spoke to a fellow who works at WFC. He's buying as much WFC as he can, regardless of the egregious risks that entails. Maybe he knows something, but I suspect he will be making his last omelet when the eggs break.

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Apple gets plenty of talk on StockTwits.com

Short this dog. Looks like a good short to cover at 55 with a nice close stop ~90.

This is the trickiest of the bunch. I suspect it will move higher due to the credit crisis, but I do have a firm belief in China's fundamental growth story.

I have a solution for Goldman. Tranche the firm into Gold (senior) Man (secondary) and Sachs (junk). Then keep the Gold, and sell the Man Sachs. (I smell bailout and a stock <10>

My favorite vehicle. Watch the ATR and buy pullbacks if tomorrow is bad.

SKF and SRS are practically the same, so trade accordingly.

Selling (Inverse buying) was low volume, which is the only saving grace for the bulls. Other than that, the shit looks like it's ready to hit the fan. If tomorrow is a washout, we're in for some major panic. Cash gives peace of mind, so stay liquid.