End Of The Quarter

by Larry Levin

What happened? Today was the end of the month and the quarter - wasn’t it? I was expecting enough fireworks to challenge the output of a Chinese New Year celebration, but instead it couldn't have challenged the output of a hand full of candles. For the most part, the market was dead.

Yes, it was the end of the quarter, and for the long-only folks it couldn't come soon enough. Stocks managed a moderate gain today, but the major indexes still ended the first three months of 2007 with massive losses...casualties of the still continuing credit crisis. The S&P 500 index, which is the benchmark for many mutual funds, suffered a loss for the quarter of nearly 10%. This was the worst quarter in more than five years.

"The worst quarter since the first half of 2002 [is] in the books at the close today, and not a day too soon," said Paul Nolte, director of investments at Hinsdale Associates.

When investors open their quarterly brokerage account or 401(k) statements, what they see will be painful. For the quarter, the Dow fell 7.55%, the S&P 500 declined 9.92%, while the Nasdaq was crushed 14.07%.

Many analysts have suggested that the market has been seeking a bottom in recent weeks since the aforementioned losses hadn't gotten worse. What strikes me as odd, however, is that the Fed’s manipulation is never mentioned. On the chart I posted a week or so ago, I noted 11 separate occasions where the Fed, the federal government, or its cronies did something to stop the market from falling. Therefore, it is not the "free market" that is seeking a bottom - but the feds. And they're so good at everything else (like the govt's post office and the FOMCs 97% debasement of the US currency) that we should welcome with open arms their ability to tell the so-called free market where a bottom should be. Oh, how lucky we are.

Real Time Trading Signals*for

Trade Date: 3/31/08

E-Mini S&P Trades*
(before fees and commissions):


1) VA sell @ 9:40am at 1322.00 = b/e & b/e

2) Engf sell @ 9:25am at 1319.75 = +1.75 (1 lot)

3) PP buy @ 11:15am at 1323.50 = -1.50 (1 lot)

4) TP buy @ 11:30am at 1324.00 = b/e (1 lot)

5) FT buy @ 1:05pm at 1326.25 = -1.50 & -1.50...-2.75

E-Mini Russell Trades*
(before fees and commissions):


1) Buy @ 10:15am at 684.0 = +.8 (1 lot)...$80


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