OK, so LEH(Lehman Brothers) keeps coming out saying everything is fine and dandy, they are well situated, no money worries, none at all. Citi backs them up last Friday saying that LEH is a buy cause they got no big issues. Then how come after the close today LEH announces that they are selling $3 BILLION worth of stock to raise capital? Hmm, something smells a little funky in Denmark!
Meanwhile, we are now officially done with 1st quarter Window Dressing. Market did nothing really other than chop suey it up the whole day. Awful trading day. Not everyday do ya get to hit a home run or two, and Monday was one of those days. What will Tuesday bring? This is tough, for the 1st time in a while I am looking for a sign rather than making a strong call. Trend wise we SHOULD rally on buying of the beaten up 1st quarter stocks like banks, brokers, home builders, etc. And, I'll assume that til proven otherwise, but I certainly am not jumping in front of this bus just yet. I would rather wait patiently and pick a spot that's clearer. It's funny, my clients want me often to make calls even when their aren't any to make. Let's force the issue just to make a trade! I can't do that, I do that I get smacked and so do they if they jump in the turd ridden pool with me. I'd rather wait and see. I would LOVE us to get a rally here cause it'll just set up a really nice shorting opp from higher ground.
So, let's see what shakes before committing. I think we are 50/50 and I like my odds to be a lot better than that! Futures are pointing to a modestly down open. I would look to fade the gap no matter which way it opens. Watch LEH for a clue. If the market allows LEH to rally then I think we set up for a decent short term rally. If it slams it off the news then the end could come a lot sooner than anyone thinks!
We shall see, but it should be volatile either way nd we'll look to ride a wave or two Tuesday to nirvana!
Or, something comparable!