August 22, 2008
Solid way to end the week, we have oil selling off in a dramatic way, which was the main inspiration of today’s rally. Especially after oil had rallied strong the day before, and had Wall Street thinking that all of the selling of late was done and over with. But like so many times before in which the bulls would wait for a dip of any kind in oil (USO) to buy more of it, the bears did the exact opposite, waiting for a rally to short to oblivion and today was exactly what they did.
Market has rallied nicely the past few days; however, the volume in which it is doing so is very questionable. If this rally is going to continue to have some legs to it, there needs to be a greater show of capital being put to work by the bulls, and frankly we aren’t seeing it yet.
Lehman Brothers (LEH) helped ease investor’s fears about them going under on a rumor of a buyout of the company, but to put any value into any rumor that is out there about the financials, namely Lehman, is ludicrous. In fact, at this point, I would still be more willing to short the stock then to actually go long in it.
Here’s the Nasdaq and S&P Charts…