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Monday, September 8, 2008

"More Communist Than China"

Those were the words of Jim Rogers today, and they are right on the money. First it was BSC, then FRE and FNM. Who is the next pig at the government trough? There are so many candidates, but WM is my favorite......

.....although LEH is putting in a good showing, too.

This chart really doesn't do justice to what happened today. The SPX hit the high of the day within minutes of the open, then went into a long sell off. As expected, volume was through the roof. Much of it was in the new penny stocks, FRE and FNM. If you were lucky enough to catch them at the bottom, you made a decent profit. A last half hour rally saved the day, and we closed not far from the high.

Things aren't nearly as rosy on the Nasdaq. We finished well off the high, and well below the open. This was negative most of the day.

The banking index BKX got a big lift today. A lot of regional banks have been strong lately, and not all financial companies have the toxic waste on their balance sheets that the big boys do. This has a lot of overhead resistance to get through, and many of the large caps are going to hold it back, but look for banks with recent relative strength, the bailout will boost them the most.

Also strong today was retailers. This has been in a monster uptrend since the July 15 bounce. This doesn't break them down into which retailers are leading, but IBD's industry group tracking indicates it is mostly clothing and discount retailers. Apparently the money coming out of energy went here.

I am still waiting breathlessly for news of PMFG's report. It is now almost an hour and a half after the close, and there is no news, although it is trading up .24% in after hours trading.

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