Back in 2008, banks were ignoring the houses foreclosing in their own neighborhoods while taking free money in the form of highly-leveraged derivatives based on false mortgage grades from suspect rating companies. This time it's different.
The definition of a technical uptrend involves higher highs and higher lows. We’re now seeing that with AAPL’s stock. So, since the bottom in January, we’re officially in an uptrend.
Depositor flight to higher-yielding alternatives will continue. And since the bonds bank’s own will be permanently worth less than the deposits they received to buy them, the only way to prevent the inevitable panic is to guarantee all deposits.
The price moved up through the neck line (light blue line), setting up a price target above the neck line equal to the distance of the move from the head to the neck.
It appears the crisis will be contained, but it won’t come without violent swings day-to-day. Where does that leave us? With sore necks from watching the market’s wild up-and-down fluctuations.
Back in 2008, banks were ignoring the houses foreclosing in their own neighborhoods while taking free money in the form of highly-leveraged derivatives based on false mortgage grades from suspect rating companies. This time it's different.
It appears the crisis will be contained, but it won’t come without violent swings day-to-day. Where does that leave us? With sore necks from watching the market’s wild up-and-down fluctuations.
On one hand, bailing out the banks ostensibly saves us all from a terrible crisis. On the other hand, “Um, why are we bailing out these idiots who were so careless with our money??”
Fortunes seem to be dramatically changing every hour on the hour as the market is whipsawing violently. And while it’s doing that, quietly, chip-makers are doing quite well.
While jobless claims weren't in Recession territory, they weren’t great. And not great is exactly what the market wants. Because the only way the Fed is going to stop ruining the market is if we move into a Recession.
The problem with hot sectors is that sometimes, by the time we notice them, the best stocks have already moved up. And chasing stocks is not a great strategy.
If you look at the stocks in this cohort, they’ve all held up very well during the bearishness. And new, explosive leaders come from the stocks that weren’t hammered as much as everything else.