Thursday And Friday Will Be A Feasting Day For The Bears
Thursday, 14. August 2008, 04:18:03
Calling All Bears, The Feasting Season Is Here Now
On August 12, 2008, Elisa Martinuzzi writing in Bloomberg article Naked Short Ban Returns SEC 19 to Bear Monday ... CHART OF THE DAY relates: "The U.S. Securities and Exchange Commission's emergency ban on short sales in shares of financial stocks, which expires today, has failed to raise the share prices any higher than they were the day Bear Stearns Cos. collapsed.
The U.S. regulator's order banned so-called naked short- selling of Fannie Mae, Freddie Mac and 17 investment banks, whose collapse might expose the U.S. government to losses.
The CHART OF THE DAY shows the market value of the 19 SEC- protected companies soaring 26 percent, or $270 billion, since the July 15 announcement. Still, that gain only returned the banks to their valuation on Monday, March 17, the day of JPMorgan Chase & Co.'s buyout of Bear Stearns, which was facing bankruptcy after billions of subprime-mortgage linked losses.
And on August 13th, Elaine Meinel Supkis writes in article The Nature Of Predicting Financial Events that "The whole point was to stop the bears. Like in that bear video I posted the other day, the bears jumped out of the dark woods as Bernanke was walking with his bucket of fish. So he pulled a gun on them and the bears retreated. Unlike the video, the two men there finally got to their car and escaped the bears. But Bernanke is still in the woods with his bucket of goodies. He hopes the bears are now gone, destroyed by the wild gyrations of the markets. But I am predicting more bear attacks. This is because bears know that Bernanke doesn't have just a bucket of fish, he is dragging along a huge whale. They will eat it."
Related Chart
MSN Chart of Bank of American, BAC, for the last month
General Commentary
The 8/12/2008 Greg Michalowski USD JPY Chart shows a complete breakdown
So now the US Dollar will now be turning lower.
The Dollar Rally is over. The yen carry traders will be selling to take profit, and all stock market indexes, such as the S&P, the NASDAQ, the Dow, and the Russell 2000, will be falling. The financial, consumer, and value stocks that were at the very center of that rally will be selling off harder than their market index.
Specific bear food
Here is the MSN chart of two consumer stocks and a group of value stocks, Apple and Autozone and the Russell 2000 values shares ... aapl azo iwn. All of these will will be falling lower now that the dollar rally is over.
AAPL to fall from 179 ... AAPL
AZO to fall 134 ... AZO
IWN to fall from 70 ... IWN
On August 12, 2008, Elisa Martinuzzi writing in Bloomberg article Naked Short Ban Returns SEC 19 to Bear Monday ... CHART OF THE DAY relates: "The U.S. Securities and Exchange Commission's emergency ban on short sales in shares of financial stocks, which expires today, has failed to raise the share prices any higher than they were the day Bear Stearns Cos. collapsed.
The U.S. regulator's order banned so-called naked short- selling of Fannie Mae, Freddie Mac and 17 investment banks, whose collapse might expose the U.S. government to losses.
The CHART OF THE DAY shows the market value of the 19 SEC- protected companies soaring 26 percent, or $270 billion, since the July 15 announcement. Still, that gain only returned the banks to their valuation on Monday, March 17, the day of JPMorgan Chase & Co.'s buyout of Bear Stearns, which was facing bankruptcy after billions of subprime-mortgage linked losses.
And on August 13th, Elaine Meinel Supkis writes in article The Nature Of Predicting Financial Events that "The whole point was to stop the bears. Like in that bear video I posted the other day, the bears jumped out of the dark woods as Bernanke was walking with his bucket of fish. So he pulled a gun on them and the bears retreated. Unlike the video, the two men there finally got to their car and escaped the bears. But Bernanke is still in the woods with his bucket of goodies. He hopes the bears are now gone, destroyed by the wild gyrations of the markets. But I am predicting more bear attacks. This is because bears know that Bernanke doesn't have just a bucket of fish, he is dragging along a huge whale. They will eat it."
Related Chart
MSN Chart of Bank of American, BAC, for the last month
General Commentary
The 8/12/2008 Greg Michalowski USD JPY Chart shows a complete breakdown
So now the US Dollar will now be turning lower.
The Dollar Rally is over. The yen carry traders will be selling to take profit, and all stock market indexes, such as the S&P, the NASDAQ, the Dow, and the Russell 2000, will be falling. The financial, consumer, and value stocks that were at the very center of that rally will be selling off harder than their market index.
Specific bear food
Here is the MSN chart of two consumer stocks and a group of value stocks, Apple and Autozone and the Russell 2000 values shares ... aapl azo iwn. All of these will will be falling lower now that the dollar rally is over.
AAPL to fall from 179 ... AAPL
AZO to fall 134 ... AZO
IWN to fall from 70 ... IWN
WIDGETIZE