For some foolish reason, the stock market is open all day today. The bond market will close an hour early at 2pm.
What? No Bailout?
The world’s third largest chemical company is going bankrupt according to this Wall Street Journal story. Lots more of that coming in ’09 I expect…
The XLF has been declining for three weeks, and its hourly chart now has a bearish descending triangle pattern (click to enlarge):
The red lines outline the triangle.
The light blue lines show the “Three Fan Line Rule” and indicate that the XLF is probably rolling over – a typical way for a bear-market rally to end. Today’s rally served to put a third fan line on many charts, and you will also see many descending triangles too.
Reindeer 6, Bears 0
The talking heads on CNBC today were all upset that there was no Santa Claus rally. But in fact, the S&P 500’s Santa Clause rally now amounts to 6 points. The SPX closed at 863 on December 23rd, so that is the starting point.
The bears are “getting the antler” from the reindeer right now, but the technicals look very shaky to me. If the market holds up through the end of the year, I think it will only be because the big funds are painting the tape. So, don’t go getting all bullish. The market will likely flop right over first thing in 2009.
Month End Markup
Can the big funds keep the market levitated for three more days while the Israelis are bombing Gaza? With incredibly light volume and the SEC looking the other way, I’m guessing that they can.
Now We Know Why the UAW Wouldn’t Take a Pay Cut
They have a ritzy country club to maintain! Black Lake should be opened to the tax-paying public until Detroit is off the public dole.
The USA’s Demise
A couple of weeks ago, I linked to a story about the Russian Professor who is predicting the breakup of the USA. Now the Wall Street Journal has done a story on him.
In Other News…
…it looks like General George S. Patton was killed by American and Russian assassins instead of dying in a car crash at the end of World War Two.
China to Crash US Bond Market?
I just read this article by Vitaliy Katsenelson, and it looks like things are so bad in China that they have begun to dip into their foreign currency reserves. Does it make any sense for China to continue to buy US paper while their people are starving and rioting?