Tuesday, September 2, 2008

gustav = little damage (we think); oil way down; (or is oil way down due to fears of a chinese recession????); mkt opened up huge then sold down hard =

Tuesday, September 2 - 4:35 PM

Afternoon Comments

Although it was looking like we were headed for a strong start to the last four months of the year as traders returned to their desks after the long holiday weekend, several waves of selling throughout the day totally reversed the big gap higher we saw at the opening bell. Lower commodity prices certainly have weighed on this market for the past several months, but instead of being the boon to consumers and businesses that many hope it may still be, market players are obviously concerned that negatives far outweigh the positives, as it might be an indication that the global economy is slowing at a quicker pace than had been anticipated.

Still, we couldn’t help but notice how many market commentators argued furiously throughout the day that the intraday reversal was unjustified, but if there’s one thing that seasoned investors understand, it’s the fundamental truth that arguing with the market is no way to make money. Even if we entertain the notion that today’s selling was “wrong”, the market won’t ever care what we think. The pricing action today was poor, and we have to respect that no matter what.

The bottom line is that a challenging market became even more so today

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