I am starting to like this market more and more. Several reasons:
- People are starting to wake up to what a train wreck the housing market and defaulted mortgages are going to be
- We've got a new financial mania on our hands - insanely huge private equity buyouts - that provide a catalyst for financial catastrophe. Remember the failure of the Japanese to buy out UAL back in 1989? That alone caused the mini crash of 1989 - - and that is a puny deal compared to the absurd BSD type deals going on right now.
- Upward momentum is rapidly waning
- The charts I have been waiting impatiently to start falling are finally doing so - - the investment banks.....the financial service companies......the real estate con artists. They're all starting to crack
The Russell 2000 has been unkind, but I think we're over the worst of this. Here is a sixty day intraday graph; the head and shoulders target of 30 points to the upside has been plainly reached. Clear as a bell.
The S&P 500 is now on the wrong side of the tracks (for the bulls). Look at the broken trendline, and observe how the momentum is leaking out.
Cabot (COG) looks like a good short term bear play.
Lehman (LEH) is representative of the investment banks, finally losing their luster.
I don't have any particular on MWP, but this is a good example of hyperbolic mania.
Recent recommendation NVR had almost 40 points whacked off it yesterday.
Maybe our filthy paws are starting to get a grip on this deluded market. I hope so.