ANOTHER LOONY SESSION END

The way I see it, we can live without these session end rallies. All that tells me is that interest is at a record low. How do you push DOW 7% in the last hour? Obviously panic buying from short traders. Every smart dollar is short this market. Think about it. Real economy looking like it is not going to recover in years and we are only just starting the downgrade process. Analysts racing to beat each other with downgrades across the board. For the Nordics that is especially true in cyclicals and energy stocks. Take Vestas. Could do no wrong for the better part of three years and all of a sudden all bulls are turning bearish. What has happened? Oil down, obviously but that is not the whole story. Funding is really the issue now. Alternative energy has by some been excluded when discussing credit squeeze in part because it is supposed to be government funded. Guess what? Not excluded and boom Vestas died. Did the analysts figure this one out themselves? NO. Had to wait for a report by some consultants (MAKE report) and all of a sudden they are taking down target prices.

OK, enough about Vestas. Other things to watch out for is the Baltic devaluation story. It is Highly unlikely Latvia is going to get IMF funding without devaluing its currency. My guess is that it is being discussed and that IMF will have to promise emergency funding in return for the EURO peg to be trimmed. This will put futher pressure on SWEDBANK, but also on SEB and why not NORDEA. SWEDISH banks should be shorted against its nordic peers (DnB, Danske). Swedish banks has outperformed for no good reason. this will probably change.

Another fool proof way of making money these days is shorting every rally. They never last, at least not the whole day. I understand reluctance of being short overnight with rallies like the one we got in US late Friday´s session, but come Monday be sure to short the open. Cover an hour later and you will be done for the day.