Updates for Thursday (9/25)

The markets reacted positively to news that a bailout was making good progress. However, the news turned less enthusiastic tonight as talks turned sour at the White House. Personally, I think this is all a VERY bad idea! They talk on and on about the housing market being the "root" issue ... no it is the root symptom! The root cause is people buying houses they can't afford (which in turn has other root causes that I won't go into right now). Pouring endless billions of dollars, that the government doesn't even have, into the finance sector is not going to do the least bit of good. Oh sure, it will in the short run. My guess is that the markets react positively for a short time (weeks, maybe months), but it will just come back.

We saw a sample of this last year when the "credit scare" first surfaced. Markets started dropping, and then it all got swept under the rug. Markets took back off, but that stench came right back out again. And look where we are now. It's a fundamental problem with American thinking. Sure give the screaming kid a sucker, but one guess what that kid will be doing when the sucker is gone ...


Today's Activity
None


Updates
AMZN appeared to have found support today on the lower bollinger band. But with bailout talks not going well tonight I'm not feeling overly confident about pulling out of the put. I think in this market it's better to just hold on.

DRYS looks like the downward momentum is dying, but some of that could be due to the markets being up strongly today.

FDX recurring theme here ... weakening momentum, but this has less indication of a reversal than the previous two stocks. We're getting closer to that 80 mark...

LVS looks to be coming off support nicely.