- You should be looking for despair. Until then we will not be cleansed. As buy-n-holders finally, finally give up and surrender their shares despair be will rampant. Have been looking for a high volume wretched day for months now. Even with the pre-market looking grim today’s options expiration may mitigate a more ugly event.
- Without that ugly scenario it is difficult to imagine our market’s return to a sustained up-trend.
- Today, gold is flying after taking a well deserved rest yesterday. Oil is giving back the gains from Thursday and equities are getting crushed everywhere.
- Bank stocks are in capitulation phases and could be the buy of several lifetimes. Or, they could be worthless. Your pick. Citi is about to slip below $2/share, SunTrust under $6/share, BAC slipped under $4 last night……the list goes on. The KBW bank index is down 50% this year.
- Obama’s honeymoon is clearly the shortest of any President. The Obama Glow about which I have written often is now a cloud.
- When GE cuts their dividend it might be a signal to buy the stock. The company spends $13 billion a year on giving shareholders cash and that cannot continue.
- CPI rose the most in eight months. Although no one seems to feel inflation is a problem I still own TIP, an ETF holding Treasury Inflation Protected bonds. Am under water by about 4% and was considering dumping them but now am not sure. An argument to inflate ourselves out of this mess is gaining momentum.
A blogger friend of mine sent me a note this morning entitled The End of Hope. In effect, it described a draconian scenario. The author has sold most of everything except for gold. It is precisely this kind of attitude that must be pervasive for us to wash ourselves of this dirty business. After the cleansing we should be all-in as the opportunities will be monumental.
