Market Rallies In Auto Bailout Anticipation - Are We Done With Green?

auto bailoutAnother day down which resulted in similar trading trends that we have been seeing these past couple weeks. With the anticipation of the bailout, traders (I dare not call them investors anymore, because the investments that are yielding profits right now are about as solid as junk bonds in my opinion) pushed the market into the green for most of the day. We did see the market dip down into the red, as people began doubtful, there being talks that the bailout could face some problems with the Republicans. However, you and I both know this deal will be done and in my opinion this bailout was factored in two weeks ago when they announced they would be meeting about it. But I am sure the market will have something to cheer about when it gets announced, but it may not last more than a day, there being no more bailouts in the current pipeline.

Emerging markets and China have been receiving UNBELIEVABLE amount of praise from investors. This weekend I will write a detailed post of why I feel FXP is getting killed so much, so look out for it. China is forking out money left and right into their airlines, banks and major business just to keep them afloat. Somehow, this is perceived in the market that this is a positive sign. I mean come one, how blind are these people. China announced yesterday that their Producer Price Inflation fell 2 percent from January to November. This is far more than predicted and is very scary for China. They have a major risk of inflation as energy costs begin to rise and global economic problems persist. Yet traders brushed that news off just as they did the horrific employment number we received on Friday.

This is a dangerous time in the market, because there is very low volume and it seems as if the main bulk of traders are not fundamental traders. It is clear to me that hedge funds and institutions are waiting. Until, we get some fundamental movement based on actual numbers, the market is one big roulette table. This is why I am choosing to stick with my few fundamental picks and just wait. EEV and FXP have been utterly destroyed the past month. I don’t dare call “bottom” during this end of the year market run, but if I had to guess, I would say we have to be close with those two. If you haven’t bought in those yet, you are loving these incredibly low prices! Bring on 2009 and the new batch of problems.

The next item up for shorting are Treasury bills. With the recent, enormous popularity in our treasury bills with the billions of dollars being flushed into them, this makes treasuries prime for shorting in my book. As the US economy continues to show signs of severe weakness, our foreign neighbors will grow fearful of keeping their money with us. TBT is the Proshares Ultra short that shorts the Lehman 20+ year treasury. With the amount of government spending, coupled with foreign countries pulling their money out of our treasuries, this should weather very well for TBT. It may take a month to get jump started, but I believe we are low enough now. I plan on picking some up later in the week.

GDX and DIG are proving their resilience and I don’t see them slowing down much in the coming months. Sure they may get hit a day or two, but I think we will see an upward trend from here on out. The Saudi’s are closely watching oil and will not let the prices get lower. All commodities are receiving a lot of love due to the global weakening currencies. I am getting the urge more and more to look into trading currencies as I have been using Forexmentor.com for research. You might want to look into it if it’s your cup of tea. I see GDX and DIG continuing to move strong. SRS hurt today with strong gains in the REIT sector. There are no fundamental reasons for these gains other than them getting caught up with the bailout bust. These should be going down just as fast as they shot up in my opinion. Like I’ve said before, SRS is a rock star in my book.

We may see a bailout pass tomorrow. Either way, the market should move with that decision. If we see it pass, expect a nice little cheer rally. This could be the peak for the longs. I may sell out of the rest of my longs, except for GDX and DIG. If there is still complications with the bailout, we could see some selling tomorrow. Either way, I believe after this bailout is passed, people are going to once again realize the reality behind their two weeks of hallucinating. I hope everyone has a good evening, Happy Trading and see you tomorrow.

42 comments:

  1. Unknown Says:

    It's a Very informative article , all the information are given very clearly. I really appreciated with it, I will bookmark this site. Thanks for sharing.

    writing dissertation titles

  2. http://www.writemypapers.org/ Says:

    Pretty nice post. Thanks a lot for sharing.

  3. special-essays Says:

    I was looking for such information. Great, thanks!

  4. find more info Says:

    Useful information shared..I am very happy to read this article..thanks:)
    Click find more info

  5. Edna Says:

    Thanks for sharing this post! Got to top-writing-services.com to find out more.

  6. Ella Says:

    Good staff. I like your writing style. I think you can write excellent custom writing papers.

  7. alexxlexx Says:

    Thanks for sharing, Happy Trading to you too! Best wishes from http://prime-essay.org/

  8. Anonymous Says:

    many fascinating topic scan this blog and provides you along with favourable issue for my obviously have, thanks
    http://www.tozcaleather.com/jaket-kulit-pria

  9. Eileen Archer Says:

    As business students are engaged in writing reports and searching about the trends of the market so we are providing them essay writing service to hire professional writers and get their papers prepared within the deadlines.

  10. Unknown Says:

    It is quite an interesting website and very informative. Professionals like me would love to read information like this. So keep it updated. You have saved me from the tedious job of designing the calendar.
    i work as a journalist and every day i write an article. sometimes I did not have much time, so I asked for help to the research paper service. it is staffed by experienced professionals who have satisfied my request very quickly

  11. Unknown Says:

    I am not interesting in ecenomics=) but my brother is a talanted economist=) And I am an essay writer. I earn money by writing
    college paper for sale =)

  12. jual jaket kulit asli Says:

    blogs that provide quality information and can be reperensi for us all thank you admin

  13. distributor jaket kulit Says:

    the info in this blog gives a good note and make visitors feel at home visiting the blog this one

  14. essay writing service reviews Says:

    Cheap essay help online!

  15. essay help Says:

    Thanks for this wonderful post :)Here is reliable research paper service for all students :)

  16. Unknown Says:

    Totally agree that nowadays is dangerous time for marketing.Recently I wrote essay on the same topic and advanced-writer.com and this website really helps me!

  17. buy cheap essays Says:

    Do my essay for me! You can get the highest grades with our highly professional writers! http://supreme-essay.net/

  18. obat penggugur kandungan Says:

    for novice bloggers like me who still lack experience, have a lot to figure out how where manage a great blog like you. thank you accept my presence. obat aborsi

  19. vimax Says:

    took time to read a good article and very useful .
    obat perangsang wanita
    vimax asli
    obat sipilis
    obat pembesar penis
    vimax asli canada

  20. Anonymous Says:

    If you feel unable to do your essay and want to reduce the risks of getting bad grade,consider using essay writing service from professional and truthworthy company,like http://www.essays-shark.net.This company has many experienced and skilled writing experts who are always ready to assist you to write original and high quality essay

  21. kitty23 Says:

    Hi! Very interesting! Thanks a lot! Only I want to tell, that essay-mania.com will be the best help for you! The best academic paperas online!

  22. Unknown Says:

    The blog contains useful information ;)P.S. www.custom-essays-online.com/ is here, so why worry about your essays :)

  23. jual obat aborsi Says:

    very minimal knowledge of economics by reading this article can add insight ku . obat penggugur kandungan

  24. Anonymous Says:

    Hello friends!!! I want to tell you about my discovery and advise it for you! I'm 3rd year university and I can say that I am a diligent student! But sometimes I just do not have enough strength and inspiration to write a thesis! Often a team of professionals helps me finish my efforts! It is http://papers-writings.com , they are cool!

  25. Unknown Says:

    Very nice and informative article. I am looking forward to your further interesting posts about FXP. Great job. Keep on writing and feel free to visit academic-writings.com if some day you need high-quality assistance in academic paper writing of any type.

  26. Unknown Says:

    Wow very good article!! Thanks that you sharing with us! By the way visit here on this site http://essay-professors.com and order for yourself any article on any theme and i think you be satisfied!!

  27. Steven Says:

    Nowadays China market captured almost entire space, but I think that another types also may a big chance become popular. As for me - i prefer to support national producing. I get to see more new interetsing posts from you in future. Don't forget that you can use custom-paper-writing.org and avoid any paper responsibilities.

  28. Albert Thomas Says:

    thesis writing service
    Things are very open and intensely clear, explanation of issues was truly informative. Your website is very beneficial.

  29. Anonymous Says:

    Sociology Essay Writing Service
    I must say we should have an online discussion on this.

  30. Anonymous Says:

    I loved the way you discuss the topic great work thanks for the share Your informative post.
    Scholarship Essay Writing Service

  31. Anonymous Says:

    Thanks a lot for the post. It has helped me get some nice ideas. I hope I will see some really good result soon.
    marketingassignmentz.com

  32. Anonymous Says:

    I loved the way you discuss the topic great work thanks for the share.
    hrassignments.com

  33. Deep Learning Says:

    Thank you for sharing such a informative information with us. Keep on sharing the blog like this.

    PhD Thesis Writing Services, Dissertation Writing Services & Research Paper Writing Services

  34. International Business Consultant Says:

    I read this article. I think You put a considerable measure of push to make this article. I value your work.

  35. Nursinggeeks.com Says:

    Thank you very much for sharing this great article.
    college papers for sale

  36. SPSS online Says:

    Pretty Helpful Material, Much Thanks For This Article

  37. Operations Management Coursework Writing Service Says:

    Hi Buddy, Your Blog' S Design Is Simple And Clean And I Like It. Your Blog Posts About Online Dissertation Help Are Superb. Please Keep Them Coming. Greets!!

  38. Sophie Grace Says:

    What’s Happening i’m new to this, I stumbled upon this I have found It absolutely helpful and it has aided me out loads. I hope to contribute & assist other users like its helped me. Good job. pikview

  39. Maria Says:

    Yesterday I came to visit my sister and we decided to have fun and play online casinos, polazili on a bunch of sites and this one caught my eye unforgettable top online casinos Here we quickly figured out what was happening and began to think quickly about the strategy. and we found her now we take money out of here every day

  40. Sophie Grace Says:

    I found your blog as very interesting and the writing style of your posts are well structured. Keep sharing such wonderful posts. Nonton Drama Korea

  41. Monnika Jacob Says:

    Many of us have probably asked yourself this question many times and it has not become very clear to you what the market really is or what is behind it. But I am very glad that you have cleared all our questions. Masters Dissertation Writing Services

  42. Jobi Johnson Says:

    provides the quality service of customized fiber connections in the case of large businesses and government entities. jack reacher jacket