Last weekend, in DQ, you could feel the bearish sentiments all over the place. But Carl Futia's blog pointed that this was the market bottom. Here is a quote from one of the comments:
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Carl, we all agree with you this market is a screaming buy around current levels.Investor angst is at levels normally associated with meaningful market bottoms. The NYSE Arms hit a very elevated 2.97 Friday morning. The VIX is at the highest level since early 2003. The ISE Sentiment Index 10-day moving average is at the second lowest reading on record. The CBOE total put/call 10-day moving average is also at the second highest reading on record. Money market funds, this week, saw $36 billion in inflows, the most since 2005. As well, the average 30-year mortgage rate fell nine basis points this week to 6.59%. This is down from 6.73% three weeks ago. Trading had a panicky feel again on friday even as global central banks inject further liquidity into the system. Insider buying in general has soared recently, but especially so in financial equities even as investors stampede out the door, according to InsiderScore.com. In fact, this round of insider buying is led by the troubled financial industry, particularly among real estate investment trusts and other companies exposed to the subprime mortgage fallout. Bottom line > BUY
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This morning, markets jumped open. But it drafted down even since. I expect the market will up from this level, and close higher.
Meanwhile, the home builders are lower due to HOV's earning report. It expects more down trend in the residential housing segment.
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