Financial history doesn't repeat itself, but it often rhymes. You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.

J. P. Morgan

"Sell down to your sleeping point"

Tuesday, April 7, 2009

Tony is right


On grim Weakness wade into MS

6 comments:

Tony said...

MS had a pop because Blankfein was speaking (if I had to put a narrative to it), but I think it has lagged GS and was just relatively oversold. I'm not sure why they don't move in tandem more.

I'm keeping my target at $30.

Tony said...

Unrelated. T.Lo pointed out Real estate's move and now it is pulling back. I'm looking at charts and thinking macro.

Is IYR forming a bull flag of sorts? Macro: people will need housing and none has been built in the past year. Not summer homes in Fla, but primary residences.

Looking at AVB. Nice dividend. Great fundies. I need to fund my IRA. OK, OK I'm into the GYOFB territory. I'll post something, but is IYR a bull flag?

Eric said...

I'll look at it... No worries Man...

I'm curious if I can fgure out which is leading GS or MS...

I think they are both stupid...

but... price action is king.

Eric said...

IYR....

That thing has run hard, and I wouldn't be surprised to see it rest for a few days.

But as I look at it, it looks to come back to 27

or even 26.5

you may want to see some kind of ABC correction out of it... it could be in the B wave of that

which is where I get the 27.

but still some "Consolidation" would not be a suprise.

I can't even remember what T-lo said about it.. besides mentioning it in the rotation.

Tony said...

Last night's podcast. She mentioned that nobody talks about RE going nuts and called it a stealth rally and part of the reflation trade.

She also made a comment about housing. She told a friend to "pay off your mortgage."

I would think the outlook is good for some segments. People gotta live somewhere. What's going to happen when copper and materials come up against increased demand?

Eric said...

THe what to do about hyperinflation? was "well pay off your mortgage" but that is a thing she has had for a long time. It's always best to be out of debt. by the time one pays off a mortgage you have paid for your house 3 times.

Ya.. I agree stealth rally in housing stocks too.

umn Ya goldman is leading.

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