TSG – Playing bailout buffoonery round the credit campfire…

Dear Trader,

TSG Stock Market Letter
Week Ending October 3, 2008

Topics Discussed This Week:

* Another heart-stopping week
* Leaders nosedive
* Earnings: Waiting for Alcoa
* Paired existing home prices still falling fast but looking up?
* Mixed manufacturing signals… sort of
* But jobs casualties mounting fast
* Credit crunch forces credit spreads … Dear Trader,

TSG Stock Market Letter
Week Ending October 3, 2008

Topics Discussed This Week:

* Another heart-stopping week
* Leaders nosedive
* Earnings: Waiting for Alcoa
* Paired existing home prices still falling fast but looking up?
* Mixed manufacturing signals… sort of
* But jobs casualties mounting fast
* Credit crunch forces credit spreads higher

It was a defibrillator-necessitating wild bull-ride this week
with investors doing bi-polar flips and legislators playing
bailout buffoonery around the financial black hole. Stocks
experienced their worst week since 911 amid bailout blues and
more troubling economic signs. In the process, the Dow
Industrials slumped back to where it was in October 2005 while
the S&P500 sunk back to where it was in October 2004.

Meanwhile, an interesting theory emerged for Nancy Pelosi’s
nasty Republican scolding on Monday that effectively put the
kibosh on any hopes for a yes in the bailout’s its first
Congress vote. But this week’s political wrangling has further
shaken confidence in our elected officials, and in the process
made a bad economic situation worse. And after great
expectations that this next bailout would be the perfect
prescription for a cure, it instead was ‘buy the rumor, sell the
news’ as the Dow lost another 157 points to end the week below
Monday’s low.

On the week, U.S. equities lost more than $1 trillion dollars in
value (they did that on Monday alone) and home values have shed
roughly $3 trillion this year alone, but what does it mean for
markets in the days ahead?

Be to checkout the chart showing the market impact of each
bailout over the last nine months on the Dow.

******************************************************
To read this week’s STOCK letter, please go to
http://tradesystemguru.com/content/blogcategory/34/68/
******************************************************