Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin, Gold and Silver Markets Brief - 18th Feb 25
Harnessing Market Insights to Drive Financial Success - 18th Feb 25
Stock Market Bubble 2025 - 11th Feb 25
Fed Interest Rate Cut Probability - 11th Feb 25
Global Liquidity Prepares to Fire Bull Market Booster Rockets - 11th Feb 25
Stock Market Sentiment Speaks: A Long-Term Bear Market Is Simply Impossible Today - 11th Feb 25
A Stock Market Chart That’s Out of This World - 11th Feb 25
These Are The Banks The Fed Believes Will Fail - 11th Feb 25
S&P 500: Dangerous Fragility Near Record High - 11th Feb 25
Stocks, Bitcoin and Crypto Markets Get High on Donald Trump Pump - 10th Feb 25
Bitcoin Break Out, MSTR Rocket to the Moon! AI Tech Stocks Earnings Season - 10th Feb 25
Liquidity and Inflation - 10th Feb 25
Gold Stocks Valuation Anomaly - 10th Feb 25
Stocks, Bitcoin and Crypto's Under President Donald Pump - 8th Feb 25
Transition to a New Global Monetary System - 8th Feb 25
Betting On Outliers: Yuri Milner and the Art of the Power Law - 8th Feb 25
President Black Swan Slithers into the Year of the Snake, Chaos Rules! - 2nd Feb 25
Trump's Squid Game America, a Year of Black Swans and Bull Market Pumps - 24th Jan 25
Japan Interest Rate Hike - Black Swan Panic Event Incoming? - 23rd Jan 25
It's Five Nights at Freddy's Again! - 12th Jan 25
Squid Game Stock Market 2025 - 5th Jan 25

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Dead Cat Bounce —What to do...

Stock-Markets / US Stock Markets Aug 31, 2008 - 02:01 PM GMT

By: Money_and_Markets

Stock-Markets

Martin Weiss writes: Don't let last weeks rally in the Dow fool you. There are two crucial reasons why I'm convinced it was nothing more than a dead-cat bounce:

First, it was on extremely light volume. With most of Wall Street traders already on their Labor Day vacations, a handful of traders can easily move the market no matter how dire the underlying fundamentals are.


Second, the fundamental forces that caused this crisis — the number of mortgages going bad and the losses at banks, brokers and insurers — are piling up faster now than ever before.

Nevertheless, the Pollyannas of Wall Street — the same analysts who used to swear on a stack of Bibles that the mortgage mess would be "small" and "limited to sub-prime" — are out in force again, trying to lure you back into some of the most vulnerable stocks in the world today.

Mark my words: This credit crisis cannot end ... the bloodletting in bank stocks cannot subside ... the damage being inflicted on companies that need credit to survive cannot be healed ... and the carnage in the economy cannot be reversed ...

... until the cause — ever increasing debt defaults — is reversed.

Meanwhile, we have alarming reports that Florida's largest bank is now hanging by a thread and that news of a major bail-out could come as early as next week. Be sure to look for Sunday's Money & Markets for the full report.

And here's more help for you: Recently, we completed a startling new program, The "X" List, naming the banks we feel are the most likely to be in danger, and giving you explicit instructions on what to do about it. If you missed it, I suggest you click here to watch it now, before it's too late.

Plus, earlier this morning, my colleague, Mike Larson, sent you a blockbuster new report on the banking crisis which you must not miss. Click here to read it on the Web.

In the meantime, I wish you and yours a grand Labor Day weekend.

Good luck and God bless!

Martin

This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com .

Money and Markets Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in