Dead Cat Bounce?
Research for Online Investors

by John Dalt

8/18/09

The market is quite today as we look for direction.  Is it a dead cat bounce?  The volume is light and there does not appear to be much enthusiasm.  We would conclude the fabled “money sitting on the sidelines” is not convinced that the worst is over.  I went through the levels of support this morning when preparing for the SwingTrader alert.

The market strength that pushed us through 950 and 1000 resistance causes me to look to 950 as support.  I think we will see buyers if the market falls that far.  The news has not changed enough to shake investor’s confidence in the belief that the economy is recovering.  China sold off overnight, and there is always a question of how strong their recovery is.  However, I have not seen any earth shaking news that would push FEAR to new levels.

A former informant for the U.S. Secret Service has been charged with hacking corporate computers to steal 130 million credit and debit card numbers.  Who can you trust?  The BBC has the story on the identity thief.

UBS, the Swiss banking giant has evidently reached a settlement with the U.S. government.  Headlines today should cause some heartburn.  More than 150 UBS customers are being investigated for “criminal” tax avoidance.  Names were handed over to authorities last week, and government lawyers are wasting no time in spreading news of potential prosecutions.  History suggests that those who self report their transgressions can avoid criminal charges.  CPA’s report brisk business with clients seeking to come clean with the IRS.  Reuters has the story on the U.S. targeting 150 UBS clients for Tax Evasion.

In a nod to civil libertarians, the White House has shut down its email address where sycophants could send critical emails of Oh! Bama’s health care policies they had received.  This was to tip the Washington “war room” to “fishy claims” being circulated via email.  Politico has the story on how close we are to Orwell’s 1984  I hope they got one of my emails, I would feel privileged.  Of course, the White House denies they were collecting names or emails of critics.

I am reminded of a quote I saw one time concerning the Soviet Union.
“Nothing is ever more certain than when the government denies it”

Our quote for today:
“In our age there is no such thing as 'keeping out of politics.' All issues are political issues, and politics itself is a mass of lies, evasions, folly, hatred and schizophrenia.”
----George Orwell

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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