Saturday, August 23, 2008

Psychology of the Upcoming Week's Earnings and Economic Data

Good morning and good evening, wherever you may be reading! The S&P 500 Index was down for the week, FRE and FNM fell below $5.00/share, simply a very troublesome development that may create hedge fund problems. Could the huge drop in crude on a Friday be related to hedge funds screaming for liquidity, especially after Goldman Sachs called for crude to rise to $150/barrel by year end? That's what we call a dislocation. The strange actions from Russia will not go away easily; even Vice Presidential candidate Joe Biden agrees: Add the hanging potential for an Israeli strike against Iran's nuclear facilities, and do you see obvious reasons for bullishness? POTC feels the bear market rally on Friday is a good lesson in market mechanics, as FRE and FNM's precipitous price erosion has caused a market dislocation. We remind you September has historically been the worst month for the stocks. Next week also brings the three day Labor Day weekend, so great caution is urged late in the week, but especially on Friday. From an economic perspective, Monday-Thursday looks to be... - - - - - - - - - - - If you would like to receive this and future posts and market analysis, please send an e-mail to and make sure that your e-mail client will not consider messages from that address as spam.


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Anonymous said...

You’re too kind. We’re working on a service site as well. It takes 18 hours per day sometimes to do research and bring educational and timely ideas. We appreciate the comment, as we also subscribe to and seven other paid services. Research is critical, but interpretation and timing are monumental. We always try to remind readers of patience and the fact that cash is king (never force trades).

Anonymous said...

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