Technical analysis receives disapproval in business schools. There are studies suggesting there is little or no value to the practice as it pertains to stock direction. I don’t know what the truth is but I find it curious that today’s low was S&P 754.37. This number is exactly the area technicians howled about; should we break it we would go to 600. It bounce off 754 and finished at 770, down 1.1%.
There will be disappointment we didn’t flush the toilet today. A rousing 5-6% decline would have gone a long way to the cleansing process.
The day was much worse than the averages indicated. On 2.1 billion shares, heavy, declining volume outnumbered advancing volume 3to 1 and declining stocks swamped advancing shares 767 vs. 2341.
At one point today you could have bought all the equity of GM for less than $1 billion.
Senator Dodd should probably begin checking with the White House next time he considers tanking markets.
Gold went though $1000/oz. before settling at 992.40.
Depending upon weekend news we could get the Big Flush next week. No promises, of course. And certainly no promises that the Flush will be a signal to back up the truck. I am getting calls, even today, asking if it is too late to sell. So, total capitulation is still in the future.
Annaly Capital Management (NLY) has been a favorite yield-hog idea for several years. Some think they do it with mirrors but their web site explains it well, even to showing individual positions. After falling sharply intraday shares closed up 5.8% and offer a 14.6% current yield. I have met management several times when my old firm helped with the IPO and add on offerings. I liked them then. I have owned it, nervously, for a while (I think I am modestly ahead) and suggest you visit their site and get comfortable with the concept before venturing further.
When I drink wine I am an ABC snob. Anything But Chardonnay is my mantra. I used to consume buckets of cheap Kendall-Jackson chardonnay in the ’70’s and thought it wonderful. Then I discovered Sauvignon Blanc. The subtle variences from vinyard to vinyard, the fruit one could actually taste (as opposed to oak), and the general crispiness was a wonderful discovery. Over Christmas one of our sons introduced us to White Haven. You take small sips and let it roll over the place, let it warm a bit, hold it then swallow. Yowza! Before I get censured by the web-police I’ll simply add the web site for this delicious wine. Sauvignon Blanc 2006 Tasting Note — Whitehaven Wine Company …
Next week could be hugely important to investors. It is not a shortened week and we don’t have options exercise to worry about. Washington will be very busy and I expect announcements, at least by Monday. The Sunday morning news shows will be important.
But, lets not get too serious about all this. Its the weekend! A little White Haven would do just fine. Here is hoping you are able to enjoy friends and family and come back Monday full of peace and energy.
