Monday, November 3, 2008

Interesting Money Blog Snippets #1

1. Global Stock Markets - Halloween Relief?

Here is Richard Russell’s (Dow Theory Letters) take on matters: “Things are looking better. After a series of 90% down-days, we had a 90% up-day on Tuesday, October 28. Since then, the market action has been fairly good. With bonds appearing to have topped out, I’m beginning to think that there’s a fairly good chance the market has bottomed. Adding to the bullish case, Lowry’s published a significant contraction in selling pressure today.”

2. Bear's Last Stand

Yes, I now believe the ultimate low is already in. We're still in a bottoming process but the low will not be violated and we're set to have a really good multiyear rally.

The BEAR is dead, for good. This is "Bears' Last Stand" and the hole underneath them just busted wide open and they are falling in one by one. Sucked in like the Black Hole sucks anything in. Their fate is sealed. Goodbye Elliott Wavers.

3. The Rise And Fall of Nokia

Nokia investors have experienced a very wild ride in a short period since the start of 2006. From a low near $16, Nokia rose to $40 per share in two years (though not exceeding is 2000 split-adjusted $55 high) and then has spent the better part of 2008 in virtually total free-fall.

I did want to point out a larger “accumulation-distribution” pattern (or cycle) that was evident in the stock.

4. Flush DBS High Notes 5 Down The Drain

Let’s take a leaf out of J.P. Morgan, Jr’s philosophy of wanting his bank to be known for ‘doing only first-class business… in a first-class way.’ This is a statement he made before the Sub-Committee of the Committee on Banking and Currency of the U.S. Senate in 1933.

5. Rate Cut May Be Too Late For Baby-boomers

The rate cut may be too late for the baby boomers …

As many baby boomers are facing retirement, this recent meltdown in the stock market has put many in a precarious position. Money they had counted on for their golden years has quickly disappeared and will not likely return anytime soon.