Buy the Rumor, Sell the News

Stocks look sharply higher for the opening. All ears waiting for Geithner.

Quadruple Witching Day

Fasten your seatbelt. Futures, options on futures, equity options and single stock futures all have quarterly expiration today. Oh, and happy Spring!

DJIA Needs to Close Gap Near 6876

The DJIA opened down last Thurday, leaving a gap of 100 plus points from Wednesday closing index. In my technical analysis, a gap must be filled before a new trading range may develop. While there should be major resistance at 6876, it's good to see a bear market rally of significance today.

DJIA: Trading Down Nearly 4% AGAIN this Week

The index is down 271 points (-3.95%). The S&P 500 is down almost 4%.

In a Nutshell

From rightwingnews.com

Mo Town Bail-Out

Knowing the topic will not just go away, I have been carefully trying to formulate an educated opinion on the subject. After learning today about the top guys flying private jets to D.C. to discuss the hand-out, I finally found some closure. Get. A. Job.

The Roaring Eighties

It certainly was an exciting time to be working in financial services.  Having passed my Series 7 exam in 1980 at a regional investment banking firm in Chicago, I joined Morgan Stanley in Chicago, August, 1982.  It was an optimistic time in the industry.  After transferring to Manhattan in 1984, I was wined and dined and entertained in big city fashion.  There was lots of money to be spent, and it was spent by those making it on Wall Street.  Twenty-three year old kids, just hired from MIT, ruled the trading floors.  They were revered.  It was the start of derivative and risk products becoming alternative investments and sold to Main St. investors.  Many books have been written on these wild times, such as Liar's Poker, Barbarians at the Gate and the fictional The Bonfire of the Vanities to name the most iconic.  I just have one question, why didn't any of these brains see this current financial debacle coming?

Market Watch: Don't Panic

Mob behavior can be quite intimidating.  While I'm no financial expect, I did spend seventeen years in the financial service industry, once upon a time.  One of the most compelling reasons for investing in American companies is the proliferation of aging baby-boomers.  This segment of the population, collectively, has amassed huge savings in anticipation of retirement.  Where are they going to safeguard their money?  Under the mattress?  CDs?  Bank savings accounts?  Gold at this level?  No.  They are going to be very selective in investing in good, solid growth American companies.  This is a good time for bargain hunters.  

Introducing Wild Willy, Financier Extraordinaire

The Bloghusband, a.k.a. Wild Willy, has been ask to guest blog here about the financial issues concerning this country.  Below you may read his first two posts. 

Alan Greenspan's View

At a recent Deloitte conference Alan Greenspan shared his view of the causes of the current economic situation:

1. not his fault

2. this is a "100 year event"

3. solvency problem, not an economic problem for the country

4. further regulation not required, as the system works 99% of the time

5. this is all caused by human nature (greed by everyone, not just Wall Street)

6. the liquidity problem will all be over when home prices recover - mid 2009

Somehow this did not all hang together for me.  What do you think?

Big Day for the Dow, But Only a 6.98% Decline

Today's decline of 6.98% in the DJIA ranks 18th out of the top 20 greatest percentage, single-day declines in history.  It was the highest single-day point loss in history at -777.68.  While I do believe the economic situation is pretty grim, I also believe that the longer term trend is up.  And it would be so unpatriotic to think otherwise, regardless of who wins in November.

Prada Ankle Boot

Classic styling and quality craftsmanship for years of wear and enjoyment.  A splurge by any standard, but in this economic environment, it could prove to be a most practical investment.  It's anyone's guess how the banking and mortgage debacle is going to shake out on Wall Street over the next weeks, but the word "catastrophic" has been used frequently over the weekend.  I did some shopping today, just in case.