This would be troublesome as it would signal that the money center banks still have not got a handle on losses triggered by the subprime lending debacle. Financials continue to be crushed, with Lehman showing the way. But, is it just noise?
Noise is a major factor in market action, and rhetoric tossed out by guest analyst can leave your head spinning.
For example, I fondly remember analyst Jerry Favors back in the day calling for an intermediate top in the March 20-23 range which could be significant. He was often on target, but I think he was tossing darts at some zodiac board. I recognize there are theories based on dates people subscribe to, but I found it more entertaining than substantive. Jerry, unfortunately, passed away in 2006. Everyone seemed to be bullish during the dot.com boom, except, of course, Bill Fleckenstien, who as Gary Kaultbaum said, has been bearish since Noah's Arc. Analysts showed up daily, singing the praises of the bull as everyday folks were hanging in getting crushed.
Perhaps the top perma-bull of the day was Joe Battapaglia, formerly of Gruntal and now with Stifel Nicolaus. In all the interviews I saw, I recall him staying bullish on each leg the NASDAQ took down. Now, Battapaglia, frequently a guest on Kudlow & Company on CNBC, is leading the bearish parade. I find it hard to place any weight on his comments, but he probably knows something I don't. I just nestle up with IBD. The market will give you the message you are looking for. Certainly, there are great analysts out there, and I am a fan of Jim Cramer like the rest of you. But, had you listened to many of these folks without doing your own due diligence, you could well be under water. So, you should proceed with caution when investing, do your homework and discard all the noise while performing your own due diligence. Without question, that includes anything you read here on the blog. Hope you find the next cup and handle!
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