Buying on Confirmation of a Recession?

Posted by Ray on October 30, 2008 under Main | Be the First to Comment

The market opened up +200 points today because Asia was up and, I guess, people like the confirmation that we are in a recession? We do not get it, but apparently buying stocks is a good thing when the economy shrank by .3% and consumer confidence is at 38.

While we think the market was oversold at 8100, we think the market is now way over bought. There is no reason to buy stocks today, the data stinks to high heaven. Although, this is the first hour of trading, but we do expect rationale people to come into the market soon and say, are you kidding me?

Based on the data the market should be much lower than it is. We see the technical’s kicking in to support the market, but fundamentals typically trump the technical’s. We speculate a loss by the close of trading today, but hell, if you like negative growth then go ahead and buy…