The Dow, the S&P — lots of nothing

Posted on Nov 07, 2008 by in Letters

Nobody knows what is going on.  Speculators are stepping forward to buy stocks.  (Some of them think they are investors.) But the charts show nothing but sideways.  Here's what's going on:  We are either in a consolidation or a reversal.  It is a trading market.  Investing in a trading market is not a healthy thing to do.  Investors (trend followers) are still short.  There may be stocks making bottoms.  We looked at the Dow stocks and didn't see anything we liked.  Today on NPR analysts comented that counting all the people who are unemployed (why on earth would you do that?) not just those who are still looking for a job would probably produce a figure of 10 or 11%.  That is not a context for strong stocks.

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