Good morning. Happy Friday.
The Asian/Pacific markets closed mostly down; China gained > 3%. Europe is currently mixed and without any big movers. Futures here in the States are flat.
GOOG is up huge premarket; GE is down – each had earnings.
Bernanke speaks today.
And for what it’s worth (not much in my book), stock options expire today.
As you know, the big news yesterday was the beating the banks took. Two weeks ago the cloud stocks got crushed, but the market was able to absorb/ignore the losses. Can the market do the same while the banking sector takes a hit? Not sure. To some degree the banks are supposed to offer clues as the the strength/weakness of the economy, but since most of their profits are coming from the free money the gov’t has given them, who knows what they represent. I definitely don’t think they’re as important as they once were.
The dollar got hit again yesterday. I continue to believe it’s the single most important driver of market movement at the moment. Watch it closely.
Overall the action continues to be constructive, and I still believe the Apr highs will get tested this winter. But the rally is getting a little extended, so I’m in preservation of capital mode. More after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Earnings Reports
this week’s Economic Numbers
0 thoughts on “Before the Open (Oct 15)”
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Jason – At some point, don’t you believe that the collapsing dollar becomes a negative? Viable economies don’t have collapsing currencies and one of these days, there could be a psychology change among investors. I understand that the current trend says stay bullish equities during a falling dollar, but the current situation is unhealthy and at some point will be recognized as such, won’t it?
Not sure Bruce. In my opinion, for the same reason a loaf of bread used to cost a nickel and now costs 3 bucks, the S&P can go to 5000 if the dollar keeps getting devalued. That doesn’t mean we’ll be richer…it just means everything will be more expensive. The stock market isn’t going up because companies are growing organically, it’s going up because the currency it’s valued in is depreciating. JMO
“At some point”?
Jason – I understand the concept. I just think that at some point, even Wall Street rebels against debasement. In the meantime, this tape can’t be fought for more than 15 minutes at a time.
Short the chart not the stock.
So far Neal Weintraub has been the permabull in the crowd. If he says
to short Comcast on a rally he might have some inside information. HW
BERNICKIE IS SMALL FRY—-ITS CHINA /SINGAPOUR DUMPING USD’S IN LIGHT OF WHAT BERNAKIE WANTS TO DO AND US GOVTS OUTBURSTS ON CHINA MANIPULATION THATS CAUSING THE USD TO GO DOWN ATM
BUT WATCH OUT USA COULD BECOME A ZOOMBIE TOOO
I DONT CARE IM A DAYTRADER–I CAN ALWAYS FIND SOMETHING TO TRADE
WELL ACTUALLY I DO CARE