Out of the Blue

By David Fry | October 28, 2008 | 6:49 PM | 0 Comments

Well, not really. This type of rally has been building for some time given how oversold things had become. It’s also why we closed our shorts and went to cash. This rally began last night in Asia when Japanese authorities directly intervened in currency and stock markets. The rally then spread to other Asia-Pacific indexes.

The Beat Goes On

By David Fry | October 27, 2008 | 7:08 PM | 0 Comments

Before the open things looked bleak as Asia and Europe equity indexes were being pummeled. Surprisingly US markets rallied quickly off the pre-open and opening lows on not much news until positive home sales data gave bulls another reason to pump things. We turned positive, but in the end, no one wanted to stick around on the long side and stocks were in a sharp free-fall into the close. Volume was respectable but breadth continued showed continued distribution.

The Risks Associated With Potential ETF Closures

By Gary Gordon | October 23, 2008 | 2:34 PM | 1 Comment

Zoe Van Schyndel at the Motley Fool noted that 25% (200 of 800) of ETFs have assets under $50 million. These 200 ETFs may be showing signs that the investing public isn't particularly intrigued. When the investing public has little interest in a particular exchange-traded vehicle, the company sponsoring the ETF in question may be forced to close the fund. And while you're not at risk of losing an entire investment, you still need to stay informed.

Stocks Fail to Follow Through

By David Fry | October 21, 2008 | 6:51 PM | 0 Comments

I suppose that’s the message he’s sending. But, he knows better given his past experiences and responsibilities. After all, if a bank’s trading desk can day-trade free money profitably they would. He ought to know.

Washed-Out and Undervalued? Or, Just Oversold?

By David Fry | October 20, 2008 | 6:47 PM | 0 Comments

Washed-out and undervalued? Or, just oversold? That’s the big question for equity bulls and bears. Some notable veterans [Buffett, Hussman, and Grantham for example] believe the former is the case although they ultimately accept more downside as a possibility [um, who doesn’t?].

Buffett ETF: PFF May Be Your Best Shot on Goal

By Gary Gordon | October 20, 2008 | 3:51 PM | 0 Comments

Everyone's talking about Warren Buffett's New York Times Op-Ed piece. The Oracle of Omaha says that it's time to buy American stocks. Indeed, he has mostly let his money do the talking; he's been buying stuff for the future. Or, in Warren/Wayne Gretsky-speak, "I don't skate to where the puck is, I skate to where the puck's going to be."

Big Wednesday Wipeout

By David Fry | October 15, 2008 | 7:01 PM | 0 Comments

No rest for the wicked, eh? Just when I was thinking some sideways action would be in order economic reality wipes out tame expectations. Stock investor wipe-outs are continuing. If you want to ride the wild surf you better be nimble or have some guts. If not, stay on shore as in "cash". You're already starting to hear the chatter for another round of interest rate cuts. That won't stop until we reach 0% which isn't all that far away. Authorities are out of meaningful ammo.

So That's the Bottom Then Right?

By David Fry | October 13, 2008 | 6:41 PM | 0 Comments

Yeah, they’re tossing everything they’ve we’ve got at markets. Lloyd Bridges line from the movie Airplane may be what we all need right now eh?

Asset Allocation and ETFs: Pimco's EL Arian in 2008

By Gary Gordon | October 10, 2008 | 2:07 PM | 0 Comments

It seems that the CBOE Volatility Index ($VIX) breaks historical records on a daily basis. A long-standing rule of buying fear when the VIX spikes above 30 has fallen by the wayside, as its climb has been as epic as oil's run at $150 per barrel.

Paulson & Bernanke: What's Coming Next?

By David Fry | October 09, 2008 | 7:21 PM | 1 Comment

Batman [Paulson] & Robin [Bernanke] Batman: "It's time to get set, Robin. It's almost oda wabba simba." Robin: "It's almost what?"