7/15/08 (Selling the Faith, GM, JNJ, PPI, Retail Sales) |
| Published: July 15, 2008, 10:15 am |
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Traders, A colleague called me late yesterday and mentioned - why bother with indicating supports, we are beyond technical's at these levels. He is probably right. The market moves on perception for the most part, but at the end of the day perception falls to the wayside and it becomes strictly about fundamentals. We are seeing that with INDYMAC and Freddie and Fannie. However, while supports have pretty much failed (the RUT the last hope of holding) - it is the faith that has really been extinguished.Just like with our currency (FIAT) - the market is just an extension of that FAITH. Not only have we (domestically) begun to lose faith (or hope), but more importantly the WORLD has lost faith in the Dollar and the U.S. markets. When faith is lost - technical's and fundamentals no longer mater. And that is a scary thought. At these times even healthy companies can fall in price and THAT is when real value is found.It's clear that the TOUGH TALK that we have heard from Bernanke [ Full article ] |
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