The Stock Trading Advisor; January 8, 2008
Today appears to be just another day on the south side of town. After being up most of the day, the market’s got drilled when Countrywide Financial was rumored to be readying a bankruptcy filing.
This isn’t overly complicated. The talking heads may think it is but it isn’t. The other shoe is ready to drop. Subprime is still the word of the day as Bear Stearns’ chief Jimmy Cayne is headed for the showers. Merrill Lynch says we’re in a recession and the Fed is still up in the air about rates. Is there anyone left who cares?
Nothing has changed – more sellers than buyers. We’re still on defense with a couple of shorts and some really tight stops on our long positions.
The perma-bulls are having a tough time with this market. The indicators say DEFENSE and that’s where we are. If you want to learn more about my indicators, just send me an email and I’ll be happy to reply.
We’re still short General Motors (GM) and Under Armor (UA). I’m looking for me shorts tonight.
It’s ugly and could get bleaker before the bulls bust loose. Keep your hard hat on and stay low.
RAC
The Stock Trading Advisor
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