Wed Oct 27 2021
Transports have not closed above their May high. This is necessary to generate a new Dow Theory buy signal. Transports would need to join the Industrials with each registering a new high.
Tesla is now worth more than the next nine auto companies on the Hertz purchase. GM at $84 B, Tesla at $1 Trillion, sounds frothy to me.
An article in today's WSJ shows banks with as much debt as they had going into the 2008 financial risis. The theory is that a layer of long term debt will cancel short term concerns. Lehman is cited but Lehman had 10x sub prime mortages versus its cash which was raised short term in commercial paper. If this is a good idea, so was portfolio insurance in 1987, remember that?
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