No Inspiration

The market has come down slightly in last few days. Again, major theme was health of world banking sector.

Chart 1. S&P 500

S&P 500 02092009

Low volumes and strange trading with shares of bankrupt companies could evolve to be a sign that we are bound for something worse than a few percent minus. After FNM, FRE and AIG we had even price surge of Lehman Brothers Holdings (LEHMQ). The share tripled in last few days???

On the other hand I felt similar for the market in June, but we had the move in the opposite way. This time we have our dose of negative news and no earnings season to “surprise” on the positive side. The stories on commercial real-estate, REIT-s and China are hitting main stream media. The big guys are betting on the short side. Bloomberg story: Goldman Sachs Wrong on Economic Recovery, Macro Hedge Funds Say. TARP repayments earned in just a few quarters remain ignored by the market. Bloomberg story: Wells Fargo to Repay TARP ‘Shortly,’ Won’t Raise New Equity

Interesting days ahead.

, , , , , , , ,

This entry was posted on Wednesday, September 2nd, 2009 at 1:40 am and is filed under Markets. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Comments are closed.


Get Adobe Flash player