Nov 28 post

Five straight days up. We haven’t done that since July 2007 and the best 5 day rally since 1933. The thing I noticed today is….if you want your stock to go up, you need your company to be going bankrupt and have the government bail them out. Days like today are just embarrassing!! Just look at the winners of the day….Citigroup up 18%, GM up 10.81%, Ford up 27.44%. Now look at these losers….Wal-Mart down 1.31%, Apple down 2.64%, Research in Motion down 4.74%. I guess if you make really good products that people want to buy and you actually make a profit your stock is a sell. This tells me that people are still covering shorts. I really wanted to buy more SDS but I’m going to sit on my hands and see what happens over the weekend and Monday.

I’ve been trying to figure out how I missed the last couple of days of this rally and I didn’t put into account the level of excitement about buying automakers and suppliers stocks before the government bailout money. Looks to me like a buy the rumor and sell the news situation. I’m waiting to short auto suppliers once the bankrupt 3 get some money. When this market turns it will be brutal.

The only silver lining right now is gas with a 1 handle and mortgage rates with a 5 handle. That is an awfully weak ray of hope. People are not going to buy a house just because mortgages are in the 5% range. First of all, only the smart buyers will know that and if you’re a smart buyer, you will also know that if you buy today your house may go down 5% or more in value in a year or two. As far as gas having a 1 handle, we all know it will not stay here forever. Most people are worried about their jobs not fuel prices and small mortgage rate movements. This all seems pretty weak to me.