Thanks to Alphatrends.blogspot.com for their Technical Analysis.



Stock market video technical analysis for Wednesday August 8, 2007 including; Nasdaq 100 Trust Shares (NASDAQ:QQQQ), S&P 500 Index (AMEX:SPY), Semiconductor HOLDRs (AMEX:SMH), iShares Russell 2000 Index (ETF) (Public, NYSE:IWM), Trend analysis for daytraders and swingtraders of stocks and options. Trading stocks involves risk; this information should not be viewed as trading recommendations.

I read somewhere that one of the hallmarks of the new economy is more bubbles. First we had the tech bubble, then the housing bubble, and now the credit bubble. Tony Dye, the former "Dr. Doom" (so called because he predicted the demise of the tech bubble, years before it happened), said:

"It is inevitable there will be more bubbles," says dot.com crash prophet Tony Dye.

"There is this whole industry that relies on a bull market. So they are going to try to create one."

"And politicians love it because everybody feels good and tax takings go up."

"Let's face it. Nobody is going to get a prize for preventing the bubble that would have happened in 2025."

Mr Dye earned his Dr Doom tag in the late 1990s, when he began predicting the market collapse, some four years before it arrived. He wiped about [pound]8.5bn off the funds he managed by sticking with his value-based management style, quitting the firm in March 2000, just two weeks before the bear market began. Within weeks, his funds rocketed from the bottom to the top of the performance league tables.

The erosion in the Contra Fund's value in recent months follows a repositioning of its portfolio in line with Mr Dye's belief that markets are once again heading for a downturn. However, equities have continued to perform very strongly since the correction last summer.

More:

>Dr. Doom Sees More Market Pain.

Here are some more reports, from The Guild Investment Management forum.:

• WHY THERE WILL BE MORE BUBBLES LIKE THE REAL ESTATE AND INTERNET BUBBLES AND HOW WE PLAN TO PROFIT FROM THEM. Posted Jan 23, 2006.
  
• IT’S ALL STILL HAPPENING: GOLD, US STOCKS, GLOBAL STOCKS, COMMODITIES AND A FEW CURRENCIES ARE SEEING INFLOWS. REAL ESTATE IS SEEING OUTFLOWS. Posted Dec 12, 2005.
  

Stock Notes
Week of 8/6-8/10/2007

The headline risk remains, he says, noting that more negative news or rumors like this week's from lenders Accredited Home Lenders (LEND - Cramer's Take - Stockpickr - Rating), American Home Mortgage (AHM - Cramer's Take - Stockpickr - Rating), Countrywide Financial (CFC - Cramer's Take - Stockpickr - Rating) or Beazer Homes (BZH - Cramer's Take - Stockpickr - Rating) could easily set off another round of woe.

Time to Short BSC, GS, JPM, MER, UBS, WM, BAC

Time to short the financials-- they've been riding high for too long on too much liquidity. Unfortunately, it's going to go down before it goes up. We are in a similar situation to when Bush the first was campaigning for office-- except the time frame has been lengthened. Instead of being a lame duck president for one year, Bush the second will be a lame duck for two, and even though the President doesn't determine the economy, the market doesn't know that. High volatility and frightening drops will keep coming until long into 2009, when a democratic win may bring back the market highs of the late 90s.

Hedge Funds Behind Late-Day Stock Moves

Will Citadel Fall?

micaiah2004 on the Beazer Homes (BZH) message board says that Citadel puts alot of liquidity into the market, but warns that it could fall as well. Nicholas Yulico writes in The Street that Citadel upped it's stake in BZH to 5.7%.

Sowood fund Assets Gobbled Up by Citadel

The assets of the Sowood fund, which recently lost over $3 billion
as reported in Reuters, was gobbled up by Citadel, which also grabbed 
Amaranth's assets. With hedge funds, it is a matter of time and liquidity before
they make or lose money. The article goes on to say that Ken Griffin,
the manager, can wait out the bad calls and ultimately make money
on the positions. If hedge fund managers weren't so impatient, they
would eventually make money on all their positions as long-term
investors. But not everyone is as patient as Warren Buffet.

Amaranth Accused of Manipulating Gas Prices

The Sydney Morning Herald reports that the Commodity Futures Trading Commission has filed in US Court for the Southern District of New York a civil enforcement action against Amaranth, accusing the former hedge fund of manipulating natural gas prices. The Amaranth fund bought futures contracts for natural gas in 2006, betting that prices would rise in the cold winter months. 
But the winter was not cold, prices fell, and the fund lost over $6 billion.
Also reported on Bloomberg.com.