Holy Crap! Sell Everything! A tale of lambs, hyenas and bulls.

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Well, yesterday sure was fun. The second day of the second round of earnings seasons came in like a lamb and went out like a laughing hyena. The lambs to the slaughter were Sears and Home Depot, who both issued profit warnings. But the hyenas were everywhere. Bernanke’s remarks sounded might be translated as someone saying “Ha-hah! There’s no way you are getting a rate cut this year!” Standard & Poors laughed at everyone who trusted their subprime debt products rating: “Suckers!” European currencies laughed at the dollar: “Puny American!”
Jim Cramer likes to say there’s always a bull market somewhere. We’re not sure about that. But we do know that there’s always a bull somewhere. And yesterday we found one of our favorite bulls sitting in Ulysses on Stone Street, hunched over a beer. He didn't look happy but he was full of happy talk.
“Well, housing is screwed and stocks are screwed and the dollar is screwed but this means that the Fed will have to start cutting rates sooner rather than later to hold off a complete catastrophe,” Mr. Pollyanna told us. "And that means now is an excellent buying opportunity!"
The worse things are the better they are, except when they get better and that’s a good sign too. And that was the signal that it was our turn to laugh.

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