Monday, 8/5 Market Wrapup

FinancialSense.com ^ | 08/05/2002 | by Scott Middleton

[Lazamataz]

Market Wrapup is delivered...

[headsonpikes]

I wonder if anyone has ever counted how many times a dead cat bounces?

I suspect the bounces get a little sloppier.;^)

[grania]

You might enjoy these daily discussions.

[calljack]

I'm refinancing the house with a 30 year fixed for 7 years. Fixed at 5.125%. Paying some extra it will be paid in 11 years. I'm putting money into my matched 401K and buying shares at a greatly reduced price. These are not the only irons in the fire. What exactly is the problem? Long term planning for me does not mean next year. It means 2015 to 2025.

[Lazamataz]

Looks more and more likely that the only (cure) left is a world war.

Wars are Good for Economies and Other Living Things.

[jwh_Denver]

I suspect the bounces get a little sloppier.;^)

I'm glad it's a dead cat and I think the dead cat is getting like a bean bag cat.

Me thinks gold is going to get hammered real hard in the next week or so. When they do I'm going %100 in gold.

[varon]

The government goes on a 30 day vacation WITHOUT a homeland security clue........

and turns the airports over to the "HOLD MUH BEER" types!

[grania]

Surely the media is going to pump it up and convince everyone that what the Fed is doing is right for your portfolios. What they won’t tell you is that by cutting rates further, they are running the risk of further alienating foreign investors in the U.S. markets. Without foreign investment dollars the market is unable to support itself

I've wondered about that. Maybe there is an ideal range for interest rates on savings that is beneficial for the rest of the economy. Lowering the rates so quickly certainly hasn't helped the stock market. Do those rates have to be at a certain level to maintain confidence in the ability of banks to make a profit?

And, if people aren't confident, are they going to continue to invest in the stock market? I don't think so.

[Ahban]

I do enjoy them and often lurk here.

[headsonpikes]

Gold has been enduring a H*ll of a hammering for years, already.

Everyone should own some gold, imo.

It's only prudent.

[jwh_Denver]

Everyone should own some gold, imo.

Total agreement.

[Dog Gone]

This article is correct. The Fed can't cut interest rates and have it mean anything. The rates are practically zero now.

I don't know about the overall economy, but the Dow chart is showing the dead cat bounce. This is excellent news, I think. We haven't seen a bottom without one before this.

The bad news is that it means the bottom is a couple thousand points away.

The good news is that it could happen in a couple of weeks, as fast as this market moves.

[arete]

The Dow will be at 5000 by november.

Tomorrow could be a VERY interesting day.

Richard W.

[UnBlinkingEye]

Tomorrow could be a VERY interesting day.

What makes tomorrow significant for the market?

[steveegg]

That could be because the dead cat doesn't have any bone structure left keeping it together. I'm waiting for a rubble bounce in a few select Mideast cities.