Top Line: The stock market continues to struggle higher in the face of all kinds of bad news. Some consider this bullish but we just see it as typical trading in a corrective countertrend move. As the market goes up, or at least as some stocks go up, the world doesn't quite understand how it can. Pretty soon, they won't be asking how it can but will be buying just because it is going up. This day is fairly close at hand and we will try to be ready to pull the trigger.
We see that the futures are trading lower this evening on what we thought was a negative reaction to Apple's (AAPL) earnings report. That doesn't seem to be the reason as we see AAPL is not trading much lower than it did in the regular trading hours. AMZN is down, another of the Four Horsemen, or in our case the Fo(u)r Speculation Index.
We know it's Wednesday evening and we should be giving you a better Update post but there is a grandson in the our world who takes priority even over the Update...we will bring you more on Thursday evening.
In the mean time, we spotted this article yesterday and meant to provide the link to it but inadvertently left it out so here it is tonight. It's fairly lengthy but, being long time Update readers, the subject matter has been laid out in a very readable manner. The subject? That would be the failure of Triple A rated mortgage backed securities, better known to us as Subprime.
Please feel free to comment on the drug companies...we are looking for some good ideas. PFE is now trading under 20.
FSI: 88.49 (very little change here, in fact the geometric version was unchanged at 90.66)