..what was that?
Friday, January 11, 2008 at 08:09AM Somehow we just can't get excited about anything we witnessed in Thursday's action. Actually, it was quite disappointing despite a +117/13 indices showing.
If this is how a bottoming plays out, we're in for a rocky ride as the action was wilder than ever. The day had no flow, no conviction you'd like to see on day 2 of a potential reversal in the making as the market simply ran up and down with the news flow. The news flow, included the telegraphed rate move by Bernanke did nothing..nada...zilch for the stocks in our universe. The late day BofA/CFC news did nothing either for our niche and that was the biggest disappointment. Simply, we'd hate to see where the market would have ended up if it wasn't for the 'house'cleaning proposal of CFC. The result is any confidence we had was squelched for the time being, maybe not for others as they see Thursday as a solid follow through day technically, especially considering the indices were down a pretty good chunk during the day. We might seem greedy, but if we don't see growth stocks/ sectors in our niche performing along..we're not happy!. The indices performance masked the underlying goings on in our view. The day just reaffirms everything we said the day before in respect to how we are dealing with the prospect of a bottoming coming off Wednesdays action. The AMEX news is really no surprise, especially after Capital One's bomb in the morning. The market should be relieved a lot of the trash (CFC) and potentially next WMutual is being taken out literally to the curb. The house needs a cleaning to boost confidence. If it can't look past the inevitable news coming out of the 'consumer' card companies..we're in more trouble.
In conclusion on TGIF day, we first need to see the market shake off the AH's Amex news at some point and not give us a 250/50 down day. Secondly, we need to see some life in our niche after Thursdays disappointing day. In the good old days, our niche would be in play after a dull day in which it did not participate. Guess..it would be too much to ask for in this environment..lol..Okay, if we get pieces of any of the above today then we could go into the weekend on a mildly positive note.
