Do not buy long on GE

1/23/09

Folks, I should have told you all long time ago that "Do not long GE" even it is very big company. Consider the balance sheet which you can find out from Yahoo Finance. GE has debt $500+ billion but only has $16 billion in cash. They are bankrupt ghost company. They are dead meat. Look at above table that the loan delinquency is rising for consumer as well as commercial.
Technically, there is no valid or good support all the way to the ground "0". If you really need me to guess it. Next support would be $8-$10. I will see you all to witness GE to land single digits land soon (trading below $10).

S&P index update

1/23/09

This is why the breakup or breakdown will play important role from here. Retest low of 2008 is no double in question. Normally, after few days decline and if market open significant lower, it means buying opportunity. However, you have to stick your stop loss.

Microsoft missed earning and killed the rebound

1/22/09

Microsoft's missed earning and no guidance with layoffs 5000 news gave cold water on yesterday's bulls. Also, look at banking index chart above, it seems the bottom may not be reached yet. GOOG did give good earning after market. However, GE is going to report its earning tomorrow morning before market open. I guess GE will missed the earning and provide worst or no guidance with few thousand layoffs. It depends what is the amount it missed compare to the estimate. If it appears much worst, watch out market would have biggest sell off of the month. Are we heading second weekly down for the market?! We will see tomorrow. Again, I am still holding bearish bias with retest the low of 2008.

Bear Market Update in Chart

1/22/09

The four Bear Markets. Our Big Bear is still crawling loud, isn't it?!

Congrats to whom purchase Citi & BAC??!

1/22/09

First of all, I congrats and wish good luck if anyone purchase Citigroup and Bank of America, or whatever banking stocks. Secondly, John Thain is now out at Bank of America. He and other senior executives of Merill Lynch took huge bonuses before officially acquired by Bank of America. See, CEOs are lieing about their book of business and also took the $$(money of shareholders) and leave freely. Therefore, none of banking executives have any integrity at all. They all take your investors money and run. So, again I wish luck to whomever got those banking stocks for long. I am not buying any banking stocks nor recommend it. Please consider to consult your financial advisor about buying any stocks not just banking stocks.

Some Charts about Banking stocks and S&P

1/21/09

We have a rally and the bulls were able to keep the upside hope into afternoon session. The S&P poised to breakout above its January downtrend and also close to 855-860 resistance band. Let's see if the news flow will allow that breakout to happen.
The other chart is showing Apples stock which will definitely be the stock of tomorrow. It was up about 8-9% after market hours on their upbeat earnings and guidance. However, the bulls probably have 2 to 3 days of playing around in AAPL before it resumes its downward movement.
The last chart is one of the banking giant which is BAC. It does due for a dead-cat bounce. But it is still within a steep downtrend. Most of its gains today were due to news of CEO and senior executives buying the stock. Remember, Wachovia's CEO did last year when he loaded up on their stock right before it tanked big. Good luck to those readers doing bottom fishing on those so called "cheap" banking stocks.

Banking dead cat bounce?!

1/21/09

All major banking stocks are rebounding huge today. It is a dead cat bounce on my call that big players covering their shorts. Also, they may unload all shares to you all. It is because government maybe choose to nationalize all banks to solve this huge mess. What it means nationalized is it will eventually wipe out all common shareholder stock value. Yes, be careful on bottom fishing that you may caught on dead fish rather a live fish.
Technically, trend is still in downtrend. Unless I see we have higher highs and higher lows, intermediate term is still in downtrend. Retest lows of 2008 is still in check.

No Inauguarl Rally

1/20/09

Obviously, We did not get the confirmation signal on last friday and today. Short term & Intermediate term are still posting downtrend. Retest the low of 2008 is very likely in scene. Look at whole banking sectors, especially as I have predicted one of the sucker "C". I have written and said that C is going on falling in $1-$3 on 11/28/08. How many weeks since then? Am I correct again? It is just 8 weeks later. C is trading below $3. BAC is next. So is WFC, JPM,.... Good luck tomorrow then.