TSG – Why this ‘bottom’ is different…

Dear Trader,

TSG Stock Market Letter
Week Ending October 17, 2008

Topics Discussed This Week
————————–

* So, are we really at a bottom now?
* Leaders back out in front
* Earnings still falling in Q3
* Retail sales, permits and homebuilders are still falling
* Treasury income flows continue to deteriorate!
* Long-term PEs … Dear Trader,

TSG Stock Market Letter
Week Ending October 17, 2008

Topics Discussed This Week
————————–

* So, are we really at a bottom now?
* Leaders back out in front
* Earnings still falling in Q3
* Retail sales, permits and homebuilders are still falling
* Treasury income flows continue to deteriorate!
* Long-term PEs reveal challenges ahead
* Looking ahead to next week…

Volatility hit extremes not seen since 1987 in another week of
awe-inspiring price gyrations. We had to go all the way back to
1938 to find another period of such extreme volatility again.
After surging to its biggest one-day gain since 1933 with a rise
of 11%, the Dow spent the rest of the week swinging wildly
between intraday extremes and had given back most of the gains
by Wednesday’s close.

Thursday’s 401 point Dow rise revitalized the index and even
after another 127 point loss Friday, it managed to finish the
week with a respectable gain with the other indexes trailing
behind.

But the action again raised calls from talking heads calling
this a bottom for the umpteenth time since this bear market
began a year ago. However, they may have a point this time as we
discuss in our Synopsis. But is it still too early to tell if
this is a temporary bottom or something with more staying power?

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To read this week’s STOCK letter, please go to
http://tradesystemguru.com/content/blogcategory/34/68/
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SPECIAL REPORT
The Mother of All Bubbles that Ate Wall Street
http://tradesystemguru.com/content/blogcategory/47/81/
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