1/21 – Market Commentary

01/21/2009, at 2:11 pm

Over the first two weeks of January, we had hoped that the markets would show us some resilience that was present during the period from late NOV through DEC.  Obviously that has not happened.

It now appears we may in for a retest of, or break-down through, the NOV 20 & 21 lows as the bearish pattern of lower highs and lower lows that began in early SEP has resumed, or continued, depending on your perspective.

I hope our reading of this market action is incorrect, however, without any good news and with the financial credit markets (Banks) still in real peril of collapse, the short term scenario doesn’t look good.

We are now looking for isolated stocks that are performing well in a really bad market.  We will also begin to identify some selected Short opportunities for ST trades.

We have already identified a couple of LT Long opportunities that look very good to us and will post separately about those.

Let’s hope that we can get through this financial morass quickly and the new administration acts affirmatively to address these huge problems and give the markets some clarity about the future of our financial and credit markets.

Coach BD

 

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