Welcome to Taipan Publishing Group... Unmatched by Wall Street, our worldwide "man on the street" network of financial investment experts will show you
first hand how to unlock the fortunes hidden in the world's hottest and fastest growing emerging markets of China, India, Russia, Brazil, Indonesia, South Africa. We provide our readers with reliable, in-depth information and specific investment recommendations... with just the right balance of safety and adventure you need, so you can
grow and protect your wealth.
From good old-fashioned American blue chips and small caps... the next hot IPOs and tech stocks... options and ETFs... oil, gold, uranium and silver... to alternative energy and commodities, you'll have a crystal clear insight and analysis to beat Wall Street – and other investors – to the profits. For more about Taipan Publishing Group – its team of analysts and editors and services, including the Free e-letter, Taipan Daily, please click here.
Today's Taipan Daily
Odds and Ends
Justice Litle, Taipan Publishing Group - 5/9/2008
- The financials look set to reverse as credit woes spread... much as we expected.
- More on China and Jesse Livermore coming your way. But first, the "New Dow Transportation Index."
- Don't embrace the weekend until you've checked out these powerful high-yield small caps -- both of them paying 10%-plus dividends. (Yowza!)
Ah, Friday. The best day of the week.
Here are some quick odds and ends for you headed into the weekend -- followed by an interesting research piece you won't want to miss.
***The financials appear to be reversing.
Just over 10 days ago, in a TD episode titled "Wait for a Reversal as Fed Folly Spreads," we advised waiting for the rally in the financials to peter out... thus setting up a chance to short them again.
Here's a chart of the financial SPDR (XLF:NYSE) as of Thursday's close.
Two things are noticeable here. First, XLF has failed to hold the breakout attempt above its previous ceiling. Second, XLF has failed -- yet again -- to sustain a move above the 20- and 50-day moving averages (the red and blue lines). The Philly Bank Index shows a quite similar pattern to XLF.
As Hillary Clinton now knows, failure to follow through on a rally attempt is bad mojo indeed. A quick plunge lower isn't guaranteed, of course. But nonetheless, this is a nice short setup. There will be some bearish trigger-pulling here soon.
Why is the rally failing? Perhaps because -- surprise, surprise -- the worst of the crisis is still to come.