We got a little warning but then bounced..Now when that warning happend, if you are playing a nice leader (BTW GS and MS are lagging in the banks today.)
But there is no reason not to just take the warning, walk away and think.... I'll wait for a Clearer uptrend.
Wednesday, April 8, 2009
so
Subscribe to:
Post Comments (Atom)
5 comments:
Lagging: GS, MS and regional index.
AXP and COF smoking hot today.
Must be some type of consumer play with BBBY up. (I hate candles and soap.)
If that's so, it makes no sense. BBBY was up only because it's main competitor went belly up (just like when BBY went up on Circuit City's bankruptcy). So net sales should not necessarily go up and AXP and COF should have no huge benefit.
but they are all early cycle recovery.
the early recovery starts then it moves down the supply chain. There is an oversupply of inventory, once the early cycle recovery names can move that inventory overstock, then they can move down the supply chain, to things like the next stage is that now the
Early cycle recovery stocks can clear the inventory, they can order more, Once they can order more, then More Microchips can be purchased, once more microchips can be purchased the materials mfg can buy more equipment to mine materials, so the industrials start moving, then the Materials can move.
I could have sworn Larry Kudlow had taken over your computer... but then I didn't see any reference to "mustard" or "seeds."
I guess there is some short covering in AXP and COF, but my point was that NET sales in the industry should be even if Linens N' Things (BBBY's competitor) is out of business. Total industry inventories should not be affected, and the supply chains (or credit cards) should have no huge net benefit.
well that is the way it works, regardless of if that is what is going on. but...
We are just going to see that the market is going to continue to react positively to any news.
but be afraid of impending news.
Post a Comment