Monday, May 10, 2004
Dow theorists now have half their sell signal, the Dow closed below 10,000 taking out its March closing low of 10,048. Now the transports must close below 2750 for a full blown sell signal. It closed slightly above 2800 today. I found some value today in MTF a large Japanese bank. It has fallen 30% since mid April. I believe in the turnaround in Japan after 23 years of malaise. Enough is enough already. Even though I feel good about buying the low on the opening today at $7.40, I will be wrong if MTF should close below $7.15. Always know where you are wrong when establishing any new positions.
Posted by Steve at 9:47 PM
Sunday, May 09, 2004
Gasoline prices up 15% this week. A gallon of regular is now $2.20. 30 yr. fixed rate mortgages approaching 7%, Health Insurance, Car Insurance, Insurance rates in general up double digits, college tuitions increases out paced inflation, New lows on the NYSE and NASDAQ now dwarfing new highs, food prices in the supermarket (milk especially) going through the roof. Inflation is back witha vengence!!! And this cannot be good for the economy. So much is tied to the price of gas, so many home equity loans tied to the prime rate, so many families barely getting by under the old prices, how will they survive under the new higher price environment??
Posted by Steve at 1:01 PM