Oh Bottom, Where Art Thou?
17th January 2008
The market continues to search for a bottom. This is becoming serious and the odd thing is that it feels stealthy. We need a huge washout on the downside and then a reversal with volume to call a short term bottom. It ain’t happening. This is capital preserve time for traders and investors alike. The curve really didn’t strengthen on today’s sell off which is giving me some hope. The curve feels tired and might be ready for some flattening in the days ahead.
A curious point: What is the deal with the bond insurer’s? They are trading like they are bankrupt with the stocks falling like lead balloons and their bonds trading like junk. But yet, they are triple A rated with the rating agencies? Something is severely out of whack here.
One glimmer of hope: Dow futures are up about 30 after-hours.
- BA