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Monday, October 20, 2008

No Commitment

A big gain today, on low volume. The SPX never challenged yesterday's low, but was facing some pretty stiff resistance at 970 until after 2 pm, after which it gained another 15 points. The AP (via yahoo finance) seems to believe it was optimism about Bernanke's testimony before Congress today that propelled the market, but I didn't see a whole lot optimistic in what he said. The laugh line of the article:

"But he also told the House Budget Committee that a fresh round of government measures might help ease the country's economic weakness. There were no details but the White House said it was open to ideas that Congress might put forth."

That's just who we need to ask for economic advice, members of Congress.

Then Nasdaq was lagging today as the technology sector showed quite a bit of weakness. We never challenged yesterday's high here. And again, low volume.

There are so many indexes it is hard to get comparisons, but I have been looking at some of the most trashed industries to see if there are potentials for decent bounces. Agriculure looks like it could get a pretty good one, and most of the agriculture stocks I looked at today (SQM, POT, MOS, ANDE, ADM, CF) were getting good bounces.

Steel producers have been one I have been keeping a close I on, as they have been absolutely trashed in the last couple of months and could get a huge bounce here. There is an obscene number of stocks here trading at incredibly low PE's.

Coal has also been thrashed., and made a huge move today. Several stocks here are moving off 52 week lows, and again there are some very low PE's here.

NGA reported this morning and finished the day up 13%. For tomorrow, I have one confirmed, SHLM, and one unconnfirmed, ASTE.

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