Wednesday, June 27, 2007

Catch a Wave

  • Quite a reversal in the market today. Down early, only to catch a wave and be sittin' on top of the world.  We have the end of month and end of quarter stuff that could be coming into play.  The strong earners and leading stocks should continue to be strong into the close as mutual funds close their quarter and 401(k) money is dollar-cost averaged into funds.  That's the playbook, anyways.
  • Besides, we've had a little pullback of about 4% or so in the general market, and the market nudged support at 1490 and despite the head fake lower, bounced off it like a champ.  If it smells like a trading range, maybe it is.  But this was only one day.  Nice reversal, though.
  • Ben and the boys speak tomorrow.  Keep one hand on your mouse and the other on the keyboard at all times.
  • More horrible thoughts on housingForeclosures are going to stack up this year and next, adding to the dynamics of falling prices as inventory climbs and buyers thin out.  I have observed three real estate recessions; this one is shaping up to be the ugliest.  We won't really know the impact of all the risky-refinances until we do.  I still think as long as the economy is going strong and unemployment remains low, that folks will make their housing payments and live their lives.  If unemployment rises, then things will get ugly.
  • Warren Buffett out there raising money for Hillary Clinton (not pictured). 

Buffett called Clinton "the person to run the country." He has not donated to any other candidate, according to public records, although he has said he would also support Sen. Barack Obama (D-Ill.) in a similar event.

Clinton finished by asking Buffett, "Why are you a Democrat?"

Buffett said he thought Democrats would do a better job in evening out the field for those who had drawn the unlucky tickets in life.

  • They were handing out "tickets?" 
  • More on the Apple iPhone from Barrons.  Kind of what I thought.  I don’t think should be all that surprising. The phone has received so much scrutiny that it wasn’t all that likely that the reviewers would find anything surprising. Some general themes: The battery life was good enough to last a day or two between charges. The screen didn’t scratch easily. It is thin, light weight, durable and beautiful. AT&T’s EDGE service is slow, and one of the biggest drawbacks. The virtual keyboard got mixed reviews, and still seems like it might not be the best choice for heavy e-mail users.  And check out the column for links to reviews....
  • I had some unlucky bet tickets down in Las Vegas last weekend, Warren.  Hey, it wasn't my fault for picking the wrong teams.  Probably some Bush-Cheney big-fat-rich-CEO lackey fix in on the games. 

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