Top Line: Friday's action continued the stretch of down days but there wasn't much punch to the move. Our position remains that we will see some more upside. We are long term Bearish but are trying to get cute here with a bounce that will correct the down move from the highs back in October. It's earnings season coming up (along with its pre-announcements) and anything can happen.
The market has sagged in here and it shows how weak the underlying trading is. If we get a rally though, the strength could come back in for a little while anyway. If the selling happens to take us much lower, we will review our position but for now we will stay the course.
We are going to keep this brief this evening--more to come on Monday evening. The biggest news item for Monday is the announcement coming from the Secretary of the Treasury, with apparent buy-in from New York Senator Schummer, calling for a major change in the oversight roles for the Fed and other entities. Here is a preview for you to consider. This should generate much media attention over the next few days.
We leave you with another article (kind of long) from Gretchen Morgenson of the New York Times. This article is telling the story of who the "winners" are in this mortgage crisis...the law firms who are pushing foreclosure to make a buck. We are not surprised but it is sad to think of the kind of things that this real estate bubble has given us. It just keeps getting worse and worse.
And, just before we are ready to sign off, we noticed that the WSJ just broke a story about Lehman Brothers. The news seems to be that they may have been the victims of fraud with a Japanese firm. What else can go wrong for these brokers. LEH is already down from about 85 a year ago to under 40 now.
FSI: 74.40 (down just a little)