Musings Of Larry Isen On Today’s Action: 4/28, 1:46 Pacific
All quiet in the markets today out in front of the FED’s open market committee meeting tomorrow.
The market is pricing in a 1/4 point rate drop. I don’t believe it’s a mark moving event.
However, I do believe the statement is a market moving event. If the FED indicates they are close to the end of the interest rate lowering cycle, the markets will respond positively- if the FED makes an announcement indicating it is going to remain vigilant on economic stimulus, and isn’t too worried about inflation, the market will hate it.
We have arrived at a point that generates a lot of impatience- Stocks have stopped going down, but the volume has not materialized to push them back up. We are in that no man’s land where the market is trying to decide where to go from here. The “all clear” signal is far from being blown, but the market priced in a lot of doom and gloom rather efficiently in Q1. We are close to some sort of tipping point. I wish I knew for sure which way.
The indexes drifted up today on light volume, and the dollar gave a little ground- not much.
In the individual stocks in our little universe, there wasn’t much to talk about. SPKL continues to trade at about the same level as the $6 million investment after making a valiant try for higher levels 10 days ago.
EFSF is struggling- trying to trade lower on light volume. I don’t know if people are impatient for news of the direct marketing campaign, or if someone thinks something is awry. Nevertheless, the stock ground a little lower.
CREE turned out to be a great call in the $25 to $26 range last week, closing at $27.38 today. I sold my options for a short term gain of about $1,000 on a $5,000 investment. I’m now holding 3,000 shares of common stock at about $26.75 average.
AAPL is killing me on its way through $170. I was waiting for a bottom of $110, and it only got to $120. My mistake. Hard to buy now.
Tomorrow I won’t be publishing this daily a musing as it will be a travel day. However, I should get to questions in the BLOG by Wednesday morning.
If it’s one and done for the FED, the market could start to break through some key resistance points. Stand by for the next chapter.
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and there it is efsf someone thinks something is awry. so I guess it will follow in the foot steps of cpne ttgl.
Editor: That is entirely possible- but not exactly. CPNE and TTGL actually did go through periods of time when they made money. EFSF has never made money. The other two are actually worse in a way, because they head faked everyone into believe they had real businesses.
Comment by Anonymous — 4/29/2008 @ 5:34 am
Larry,
Any thoughts on NIHK as of late? Seems to be holding up pretty well after your article. Not alot of volume, but not much selling either.
Editor: Doug Saathoff needs to keep the news flow going to keep investors excited. If that’s missing, the stock will probably just languish more. I believe there could be some good stuff coming.
Comment by Mark — 4/28/2008 @ 5:30 pm