This stock market is showing some surprising resilience for the past two weeks. A big selloff yesterday seemed certain, but "someone" stepped up to buy. Whether it is real buyers or beefers, "someone" wants more stock long positions.
Copper prices recovered a minor dip and are back over $2/lb.
Technology and resource stocks seem to have real buying behind them. Mirabile dictu ! That is 80% of the Fido Fund. REITs have relative strength, too. If the Fed can re-activate commercial real estate lending with the expanded TALF to give good buildings a refinancing takeout, most of the problems in that sector vaporize.
It's earnings season, so be wary - bad news could reinvigorate the bears. However, short interest is already high and there are huge amounts of cash in beefers, so good news could spark a buying panic.
I have a couple names that I'm thinking about adding to the Fido Fund.
Word of the Day
"Dysfunction" - noun [$10]; "Dysfunctional" - adjective [$10]; from the card file
Dysfunction means impaired or abnormal functioning.
Dysfunctional means having, expressing or showing dysfunction.
Sentence: Can anyone dispute that the SEC is completely dysfunctional, as most recently re-proved yesterday by their anemic or corrupt short selling proposals put out for comment ?
Le Mot du Jour
"Perte" - noun, feminine
La perte means 1. loss; 2. ruin; 3. loss or waste.
Le Phrase: Les investisseurs ont très fortes pertes et ils hésiteront beaucoup à acheter des valeurs.
Sentence: Investors have very large losses and they will be wary of buying stocks.