Archive for December 5th, 2008

Weekly Commentary December 8-12

Friday, December 5th, 2008

Friday morning in the Shadowtraders chatroom we predicted that the Market would rally, even in face of the 533,000 November unemployed and the 199,000 revised unemployed from September and October. Why? Because the Market wants a year end rally. This was the telling moment. How could stocks rally when nearly 2 million people have lost their jobs. Municipal funds, mutual funds, bond funds are all hurting, some down as much as 40%. But the Market wants its year end rally. After all that has happened this year…it is still about bonuses. If there is no year end rally, there will be no year end bonuses. The larger institutions, especially the ones that received taxpayer bailouts, have to justify giving out their bonuses. If the Market is down at the end of the year, how can they justify the bonuses? (more…)