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  • Thursday, May 18, 2006

     

    Getting Off the Cramer Plantation



    In light of the recent market declines, I thought it would be helpful to provide the readers of this blog with market commentary from around the web.

    If you have any questions or suggestions, leave a comment.

    JITTERS
    excerpt: I see the panic in peoples eyes. I see my overzealous investor friends who were ultra bulls last week, perma bears this week calling for a 1987 style crash. The media is irresponsibly playing off of peoples fears-- drumming up false comparisons of this market to 2000...

    Bounce, Test, Bounce, Crash
    excerpt: The technical damage done this week was substantial, but as I mentioned last night on Kudlow, we are near support. I'll expand upon this later, but I can envision a bounce off of these lows, a reflex rally that runs on decreasing breadth and volume for a few days to a week or so, then a retest -- and failure -- to new lows in June...

    STOP TRADING!
    excerpt: So no grand strategy for me right now. I am fading unaggressively into weakness, but that's a play that fits me personally at this point. The damage is done. We've breeched much of the support, so it's a crapshoot where this stops...

    D’oh! Inflation!
    excerpt: Given the bond market’s shocked—shocked!—reaction to yesterday's “core” inflation news, you’d think nobody on Wall Street does any of the following...

    Oversold Consolidation
    excerpt: Generally speaking it looks and feels like oversold consolidation. The spike in odd lot short sells among other indicators are providing some hope that a bottom can be found here but I think such optimism is premature. We're dealing with a different market animal than we've seen recently...

    Oh Boy Wall Street
    excerpt: Do I really need to comment about this? This type of headline is exactly what a longer-term Bear wants to see. Get em out calling for bottoms, if side show Bob can do it then so can we.....

    More Crash Commentary
    excerpt: Nicole Elliott from Mizuho made a special Thursday appearance on European Closing Bell and she is very bearish on G7 stock markets including the US. She thinks that 2006 is looking a lot like 1987. She noted that the problems of 1987 started with a backing up of bond yields...

    You Call This A Correction?
    excerpt: We've seen a lot of commentary in the last 24 hours suggesting that the market's "correction" over the last few days is nearing its end. However, if we apply our standard definition of a market correction (10% decline from a peak) to the last few days we find that some of the major indices still may have a ways to go to have a "real" correction...

    Stock Market Recap
    excerpt: I just had a flashback to a couple of weeks ago when I heard Maria Bartiromo mention "Sell in May and Go Away". She said something to the effect of "that's not working this year, eh?" to some guest. My immediate reaction was that you can't even ask that question until the beginning of June. And it really can't be answered until the fall, when you're supposed to buy 'em back. I'll bet she's changed her tune now. How things have changed since CNBC was on watch for a new high on the Dow just a few days ago...

    Should We Sell In May And Go Away This Year
    excerpt: Rallies can be too tempting to resist and they don't want to miss out on good stocks which have corrected off their highs. This is where they can make critical mistakes! They may be right many times but when they are wrong, their gains can easily evaporate and they risk their principle...

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