It’s a terrible thing, to see a nice low limit order come tantalizingly close to being filled, only to see the stock market climb back up and away from your bid.Financial news has been on a negativity-rampage for almost two weeks now (with a 2-day hiatus in the middle), and the markets have taken a good spanking.
Yesterday and today, news agencies pulled out all the stops, including interviews with Nouriel “Dr. Doom” Roubini, analyst Merideth Whitney (who called the market outlook “bleak,”) and even recycling frightening stories about housing from last year. Yet, the market retraced its decline today, with some financial stocks actually gaining.
Despite a stream of almost ridiculously negative headlines and advice (ex. “sell everything”), stock prices remain annoyingly unresponsive. The market is becoming desensitized. Stock news remains gloomy with stock prices to match, but another shock to the system is required.
With any luck, the U.S. financial reform bill will pass, creating enough anxiety for one more downward dive, and allowing the first tier of my low-ball orders to fill. In financial markets, one can only hope for the best of the worst.
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“You realize, you’re not in the analysis business, you are in the entertainment business.”
Fred Kittler of J.P. Morgan to analyst Andy Kessler, Wall Street Meat
