7 replies to this topic

[cafeflorida]

Both Bull & Bear can spin this one into their camp.

Go ahead, give it a shot. I know you want to.


--==============================--


"...The Fed doesn't want to "bail out bad investments,"
and couldn't if it wanted to, Poole said. "We do have
the responsibility to do what we can to maintain normal
financial market processes....."

"..It is for the market to judge whether securities backed
by subprime mortgages are worth 20 cents on the dollar,
or 50 cents, or 100 cents," he said. "That process will take
time, as it is expensive to conduct the analysis that good
mortgage underwriting would have conducted in the first place."

Eventually, "the market will straighten out the problems," Poole
said. However, "we do not know... how much time will be required
for us to be able to say the current episode is over."


http
://www.marketwatch.com/news/story/pool...F31E8A90E17%7D

Edited by cafeflorida, 09 October 2007 - 05:55 PM.

[Bob-C]

Both Bull & Bear can spin this one into their camp.

Go ahead, give it a shot. I know you want to.


--==============================--


"...The Fed doesn't want to "bail out bad investments,"
and couldn't if it wanted to, Poole said. "We do have
the responsibility to do what we can to maintain normal
financial market processes....."

"..It is for the market to judge whether securities backed
by subprime mortgages are worth 20 cents on the dollar,
or 50 cents, or 100 cents," he said. "That process will take
time, as it is expensive to conduct the analysis that good
mortgage underwriting would have conducted in the first place."

Eventually, "the market will straighten out the problems," Poole
said. However, "we do not know... how much time will be required
for us to be able to say the current episode is over."


http
://www.marketwatch.com/news/story/pool...F31E8A90E17%7D

Hi cafeflorida, IMHO, the market is between tick and tock and is heading over the precipice. The media talking-heads keep shouting and touting "Today is the fifth anniversary of the bull market;" sounds like the perfect epitaph!!! There was very poor narrow breadth on the NASDAQ, non-confirmations by VLE (VAY on YAHOO-Value Line Arithmetic Index), SOX and SMH, and very narrow leadership in the weighted-run-up advance of the COMPQ and NDX. IMVHO, the market will be headed sharply lower after the current DCAT rally is over.

Note, I'm not a bull or a bear, I'm a trader. I am also a person who values democracy, freedom, and human rights.

Cheers

Bob-C

[snorkels4]

every divergence is an oversold indicator i dont know what youre looking at-look at price and support and disregard resistance i guess also, congress just bailed out the home mess--the fed just has to go along with the debt limit increases--i think the powers that be believe itll work and it looks that way for the the near term

Edited by snorkels4, 09 October 2007 - 09:10 PM.

[snorkels4]

every divergence is an oversold indicator

i dont know what youre looking at-look at price and support and disregard resistance i guess

also, congress just bailed out the home mess--the fed just has to go along with the debt limit increases--i think the powers that be believe itll work and it looks that way for the the near term

by the way, take this as a contrary indicator and post some more charts, thanks

[Bob-C]

Hi snorkels4 et al., the following are extremely overbought:

Here is the QQQQ daily chart:

http://stockcharts.c...6098&r=1066.png

Note the QQQQ overbought RSI (2), RSI (5), and extremely overbought StochRSI(14) at 1.000

The same oveerbought conditions hold true for GOOG:

http://stockcharts.c...86098&r=709.png

Note the significant doji reversal candle at the top of the GOOG uptrend.

Here is the WLSH daily chart:

http://stockcharts.com/c-sc/sc?s=$WLSH&p=D&b=5&g=0&i=p99645186098&r=1160.png

Here is the SPX daily chart:

http://stockcharts.com/c-sc/sc?s=$SPX&p=D&b=5&g=0&i=p99645186098&r=128.png

Here are the QQQQ, GOOG, WLSH, and SPX daily charts with very overbought Fast STO, Slow STO, and CCI.

http://stockcharts.c...85396&r=365.png

http://stockcharts.c...85396&r=365.png

http://stockcharts.com/c-sc/sc?s=$wlsh&p=D&b=5&g=0&i=p14406685396&r=365.png

http://stockcharts.com/c-sc/sc?s=$spx&p=D&b=5&g=0&i=p14406685396&r=365.png

Note, if a "red X" appears instead of an image, right click on the "X" and then click on "show picture."

Cheers,

Bob-C

[pdx5]

Bob-C Thanks for a very informative post. Cheers!

[Bob-C]

Bob-C

Thanks for a very informative post.

Cheers!

You're very welcome pdx5, thanks very much for your comments!

Have a great day and good luck on your trades.

Bob-C

[Bob-C]

Hi cafeflorida et al., IMHO, Poole's comments were insensitive and equivocating. The public can't easily discern the value of most CDOs and MBSs because sub-prime tranches are hidden in the overall MBSs and/or CDOs while the rating agencies egregiously give the MBSs and/or CDOs misleading higher ratings based primarily on the top-tier tranches in those MBSs and/or CDOs. Cheers, Bob-C