The Markets
- Unfortunately, my thoughts about a severe decline (see yesterday’s post) came about.
- The Wall Street Journal started it all with the front page story that banks were not, as had been stated, making loans.
- Bank of America blew away the numbers this morning, before the opening. But it is apparent that the assets behind their loans were declining in value. This would ultimately result in bad debt, lower propensity to lend, and much, much lower earrings for the bank(s).
- Then a blog called Turner Radio Network publish a story that 17 of the 19 top banks were insolvent. And, it went on to say that a 1000, or so, smaller banks were insolvent as well. This source is not Ted Turner, at this point no one really knows who they are. But it did the trick.
- My BAC trade of last week barely had the ink dry before it was stopped out.
- I added to some of the dividend plays such as NLY and JNK. Turn around Tuesday had best live up to its name.
- Gold, the dollar and the VIX were all up big. Fear is back. Oil was down 8%.
- Perhaps most disturbing was the volume: 1.8 billion on the NYSE. A lot of folks wanted out of equities today. And, just as frightening, the market closed within an eyelash of the day’s lows.
- My rentals of stocks are still mostly above their stops but not by much.
- IBM reported after the close and initial reaction the stock is trading down. But the conference call has not started and guidance remains key.
Sidebar
Knowing I was not going to be able to trade for bean today I went to the gym at noon. I usually use the elliptical in the dark room; probably named that ’cause it is dark. But today I did two circuits of the Curves look-alike. This has a dozen strength machines interspersed with Exercycles. Loud music plays (I have become partial to Nirvana, especially when Kurt Kobain screams at me to peddle faster) for thirty seconds. Then a buzzer sounds and I move to the next machine. There is fifteen seconds to get to the next machine. Two circuits of that I am like rubber.
