Charting With the CEOs
This column was originally published on RealMoney
on April 2 at 8:53 a.m. EDT. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney,
We know the market can't go up well because it had no follow-through after the Fed rally nearly two weeks ago. We also know the market can't go down well because the Iranian situation coupled with the Chinese sanctions on Friday couldn't get it down, either. Chop, chop remains the theme.
As I went through the chart book this weekend and noticed all the awful-looking financial stocks, I couldn't help but think of Countrywide Financial (CFC) CEO Angelo Mozilo.
CNBC seems to parade him out every time we have a subprime scare, citing his non-negative comments as testimony to the fact that the subprime mess has not spread.
The stock was already down quite far then, but the news wasn't yet as horrific as it has since become. Now we see him on TV only rarely, and the news is now so bad that even his fellow homebuilding CEOs are afraid to give earnings estimates for the current year. You can also see that what looked like a potential bottom 18 months ago turned out to be a resting point in a longer-term decline. And didn't CNBC do the same thing to Bill Zollars of YRC Worldwide (YRCW) with his commentary on the economy? As long as he told us the economy was cruising along, then the folks at CNBC were happy. On the chart below, I've circled the time when his TV appearances were frequent.
Overbought/Oversold OscillatorsFor more explanation of these indicators, check out The Chartist's
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