- Despite improving futures during the early morning the market cannot find an incentive to rise.
- Turn around Tuesday may still find some reason to cheer.
- Despite oversold conditions I bought more SDS yesterday to protect my longs.
- Keep an eye on Google, GE and Goldman Sachs. All three were crushed yesterday and in early morning trade they are fighting to stay green. If they don’t stay green watch for lower market.
- Despite consensus thinking that inflation is not a near-term problem TIPs have risen over the last week. Bernanke said it again this morning: inflation is not a risk at this time. Yet TIP, the ETF I own goes up a little each day. JNK, my junk bond ETF has fits and starts but it, too, ratchets up more than down. Buying more.
- And from Mish a real downer “Frightening” Global Downturn
- Something more positive from John Dorfman:
“Steal U.S. Steel
United States Steel Corp. is selling for the rarely seen multiple of 2 times earnings. Does it have troubles? Certainly. But it has reduced the burden of its high labor costs and post- retirement benefits, strengthened its balance sheet and rationalized its fleet of steel mills.
The price of steel climbed from 2003 through May 2008, rising to a peak of $2,996 a ton from around $315. Then it fell all the way to $535 in November, but has since recovered to near $900.
Last month, a report from Goldman Sachs & Co. upgraded the steel industry to a buy, based partly on a belief that “unprecedented supply cuts from steel producers around the world” would set the stage for price increases.
U.S. Steel’s stock displays rock-bottom valuations. It sells for 0.72 times book value and 0.19 times revenue, along with that aforementioned price-earnings ratio of 2. It yields 3.1 percent in dividends.”
