Barrow Bits

Five in a row

To be sure, yesterday was a slow day on the Street, but nonetheless the Dow managed to post its fifth gain in a row and the week produced major gains.  Will it last into next week?  Well, there is lots of chatter that hedge funds will be back in the liquidation mode next week and that would not be good for stock prices.  Additionally, lots of economic news will be forthcoming which is not expected to be encouraging.  Still, it's hard to fight the tape and the trend is upward.  Should be an interesting week.

Disgusting

The image of crazed shoppers trambling a poor soul to death on Black Friday was truly disgusting.  Is this what we have become as a society that in order to snag a bargain a person is killed?  What a crass display of sick consumerism.  I am completely appalled.  So for all those who believed that this holiday season would not be good for retailers the image of a man trampled to death may want them to rethink that point of view. 

Tech Rebound ?

The most encouraging aspect of today's trading is the renewed interest in tech stocks.  Let's face it, if America has any edge in a global economy it's in the tech area.  I believe many really great American tech companies have been hammered way too hard in this bear market and represent solid long term value.  Perhaps more importantly,  in all of the previous four bull market cycles, tech stocks led the upturn in the general market.  Let's watch this trend carefully.  If it continues could be a very bullish signal for the market.

He's looking good

I don't know about you but I feel a lot better seeing Barack Obama on the tube explaining the economic mess, as opposed to one Bush Administration moron after the other.  The President-elect gives every indication of being a very thoughtful, deliberate CEO-type that in my book inspires confidence that things will get better, and that's just what this country needs right now.  Remember a recovery is not built in a day, and I'm sure the road to be traveled is filled with massive potholes.  But I'm getting to like who will be driving. If the market can finish up today it would be a good signal that perhaps this rally has some legs. 

Three in a row?

Well the market will be shooting for three in a row today.  I think it will be hard to achieve.  To be sure, I would like to be proven wrong and see a prolonged rally.  However, at some point reality will set in again, and stocks will retreat.  Volume should be light and indecisive. 

Leadership

It seems the market likes some leadership for a change.  Obama is doing and saying the right things on economic issues.  Won't it be great to have intelligent people trying to solve our huge economic problems?  I think the market is celebrating hope right now which is good but could prove very temporary. 

Another day, another bailout

Just your typical kind of day.  Another financial icon hits the rocks and the feds bail them out.  Where will it all end?  To be sure, Citi seemed way too big to fail, and helping them out is probably the right thing to do.  Now, what about the auto industry?  President-elect Obama gives an economic news conference today to which I will listen closely.  The man has a lot on his plate.  We could get another rally today but I sure would not expect it to last very long.

Citi

Great article in this morning's NY Times on Citi.  Guess who was key in the demise?  You got it, former Treasury Secretary Robert Rubin, who is now advsing Barack Obama on economic policy.  Didn't make me shout for joy!  Go Jets!!!!!

http://www.nytimes.com/2008/11/23/business/23citi.html?hp

Maybe it's not so bad???

Perhaps the economy is not really as bad as the media would have us believe.  I know that in my travels I can attest to crowded stores and full restaurants.  I admit that being in NYC and suburban DC  somewhat limits my perspective.  For instance, I hear tales that Florida is particularly depressing.  However, could it be that the constant barrage of doomsday scenarios for the financial system has contributed to create a situation that perhaps is not really the end of the world.  Will the exertion of some intelligent political leadership instill confidence so folks will begin to think about spending more money, thereby somewhat mitigating what is likely a tough recession?Maybe the stock market is destined to rebound big time, which happens very often after declines of the magnitude we are now experiencing.  Maybe? Would you be comfortable being short on Monday?

It's just nuts!

Just another day on the Street.  From gloom to boom in one-hour.  Is it because Obama has named Tim Geithner as Treasury Secretary?  By the way, he speaks Chinese which should be helpful.  I suspect there was some of the naming in the rally, which I think was mostly fueled by short covering.  Anyway, Citi is still a mess and may get worse over the week-end.  I wish I could believe in some follow-through on Monday but I fear the worse.