On February 7th, I mentioned the tale of the tape would resolve itself one of three ways. It was going to break UP (but that would be hard to do), be trapped in a box (No Doubt), or we’d (in the famous words of Tom Petty) BREAKDOWN. Tom Petty has prevailed. The breakdown has occurred.

Peace

Go ahead and give it to me

The only news article that tackles all the important points and the shortfalls of what the government is proposing.

The Obama Rescue via The Economist

“Banks’ balance-sheets are clogged with toxic junk precisely because they are unwilling to sell the stuff at prices hedge funds and other private investors are willing to pay.”

The bear market continues. The end of the bear is a function of price and time. My aim is to point out those precise turning points. Stay Tuned. Trade the Picture.

Peace

Know Your Source

In today’s edition of Trader Art, we are going to talk about the Ten Year Treasury note (ZN H9).
You can see from the picture that the note sold off today. Could this sell off be a good entry point into the ten year note?
If you buy it as it pulls back to the black line, you could then stop out below the red line. Take that risk and compare it to the upside potential.
Imagine if you pulled off a tight, small risk entry and you were able to ride out the entire reward potential up to the green line.
Small risks for big rewards. That’s how to trade. When you trade the picture.

Trader Art 1/^%

Wall street journal story on Prologis:
Its Go-Go Business Model Blown Up, ProLogis Scales Back

The trouble with this article? It fails to mention that there is no way the common stock of this company will survive.

Via The Fly On the Wall :

Wed Feb 11 07:55:10 2009 EST
Prologis (PLD) downgraded to Market Perform from Outperform at Wachovia

After the company reported results, Wachovia downgraded the shares on valuation and because they believe there are some uncertainties regarding the company’s structure and its portfolio.

Does someone pay for this analysis? Some uncertainties regarding the company’s structure? This company is done. Gone. Lights out. The only uncertainty here is WHEN the stock will trade on the pink sheets.

Merrill upgrades Prologis (PLD) to buy from neutral. Target $11.
Another upgrade from the mighty Merrill. This is almost as good as their analysis back in September, Perception becomes reality.

Peace

Deep Thoughts With Mister Volatility…

Tomorrow the market will do one of two things…
If it doesn’t do one, it will probably do the other

Peace