Yesterday was likely a typical bear market rally. They can look great, they can last a few days, even weeks, but they aren't a true bull run. As corporate earnings continue to be released before the bell and after the bell each day the markets will jump around. A couple of good reports but then a slew of bad ones. It's not so much the actual earnings that matter but it's the guidance for Q4 and beyond that are looking rather weak.
Keep an eye on things, enjoy the rallies, but don't be surprised by the reversals. There simply isn't anything "great" that could turn the markets around for real. We're in an economic downturn, a global one. We have to go through it, it's that simple.
Today is a key day for more of Lehmans credit default swaps going up for auction. And I think there are some of Fannie Mae and Freddie Macs that will be coming up later this week if I'm not mistaken.
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