Monday, April 16, 2007


The major indices finished sharply higher with the S&P 500 at six year highs.

Foreclosures in the US double from last year. Home builder confidence at lowest level.

Google purchase of Doubleclick boosts online ad companies share prices.

Some long awaited good news for Boston Scientific as FDA lifts restrictions on heart devices. BSX is an excellent buy at these prices.

Fremont shares up sharply as mortgage lender agrees to sell $2.9 billion of its subprime loans in a company saving move.

7 things i'm thinking

  1. Where is the market volume ? Is it summer already ?
  2. Economic data has no effect on the market. Why bother releasing it.
  3. If the market is at all time highs, how can a slowdown in earnings be priced in ?
  4. I think the Shanghai Composite will make to 4000 before the end of the month. Sick.
  5. The plethora of private equity buyouts is a result of cheap money; not because of attractive valuations.
  6. With the falling USD, sooner or later this is bound to have a negative effect on equities.
  7. If the Fed continues to pump equities, gold is of to $800 or more.


Matt said...

You make a good case, sounds alot like John Hussmans bearish arguments.

However, the COT reports show big money heavily long. Just out of curiosity, how much weight do you give the COT reports?

TheCapitalGame said...

COT showed big money heavily short starting last November. Market did not decline till the end of February - a 4 month lag. I respect the COT reports and its one of many factors I consider when gauging the investment climate.