Tuesday, August 14, 2007

Today should not have happened

The market was due for a rebound, RIGHT. It was oversold. It was not time for another drastic sell-off, but that's what we got. Have we run out of time to rally?

After hours U.S. trading shows many oversold stocks getting nice bounces. That's on typical after hours light volumes but it looks promising. Too bad we can't hang our hat on it. This may be out of everyone's hands for a few days unless something dramatic happens, some watershed event that attracts enough attention to give the market a pause that refreshes.

Tomorrow will be a day of frightening news stories and sobering to downright apocalyptic comments from the people that allow themselves to be interviewed or quoted on CNBC, Bloomberg, and elsewhere. The real players will be at work, manning the trades, chewing their nails, picking at scabs, yelling at subordinates, and manically multi-tasking between screens while meaningless fringe participants in the market will talk and scare the living bejesus out of the investing public. If it gets bad enough perhaps some firms will let their smart people go on the air and try to cool things down. Let's hope so.

As this is being typed Asia is selling off big time. With Europe's late sell-off today, the slide will likely continue early this morning and the U.S. will need some real firepower to turn this around. But since today should not have happened, there's a hint of panic in the air. If the general public gets agitated into worrying about their money market funds, and acting on that concern, things could get terribly messy.

Settle down market, take a deep breath, and give us that oversold opportunity that we missed today. Soon. It will happen at some point. Bring on that wall of worry.

On the other side of the coin, so to speak, at least the dollar is rallying after a five year slump. Wrong reason though. Investors are selling other currencies to bring the money back home to deal with their dollar obligations.

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