On Break

11/16/2008

BMB On Break

It’s time again for a little BMB R&R, especially with the market behaving as bizarrely as it’s been. Maybe if we stop watching it start to behave a little better…

Posting will be very light and variable over the course of this week, but we’ll put up an open thread each market day for our readers to comment on the day’s market activity or to post any interesting links they might run across.

Check the space below for whatever the latest might be during this ‘off’ time, and please visit the various sites in the ‘Links’ and ‘Regular Stops’ for up-to-date market news and analysis.

BMB will be back in full swing by next weekend.

Posted: 1:00 pm

11/11/2006

How Big Was It?

How big was the shift in power that resulted from Tuesday’s election? Not very, says Charles Krauthammer. And to put it in terms that I can understand quite well, he uses a football analogy:

A margin this close should no longer surprise us. For this entire decade the country has been evenly divided politically. The Republicans had control but by very small majorities. In 2000 the presidential election was settled by a ridiculously small margin. And the Senate ended up deadlocked 50-50. All the changes since then have been minor. Until now.

But the great Democratic wave of 2006 is nothing remotely like the great structural change some are trumpeting. It was an event-driven election that produced the shift of power one would expect when a finely balanced electorate swings mildly one way or the other.

This is not realignment. As has been the case for decades, American politics continues to be fought between the 40-yard lines. The Europeans fight goal line to goal line, from socialist left to ultra-nationalist right. On the American political spectrum, these extremes are negligible. American elections are fought on much narrower ideological grounds. In this election the Democrats carried the ball from their own 45-yard line to the Republican 45-yard line.

The fact that the Democrats crossed midfield does not make this election a great anti-conservative swing. Republican losses included a massacre of moderate Republicans in the Northeast and Midwest. And Democratic gains included the addition of many conservative Democrats, brilliantly recruited by Rep. Rahm Emanuel with classic Clintonian triangulation. Hence Heath Shuler of North Carolina, antiabortion, pro-gun, anti-tax — and now a Democratic House member.

The result is that both parties have moved to the right. The Republicans have shed the last vestiges of their centrist past, the Rockefeller Republicans. And the Democrats have widened their tent to bring in a new crop of blue-dog conservatives.

Moreover, ballot initiatives make the claim of a major anti-conservative swing quite problematic. In Michigan, liberal Democrats swept the gubernatorial and senatorial races, yet a ballot initiative to abolish affirmative action passed 58 to 42 percent. Seven of eight proposed state constitutional amendments to ban gay marriage were approved. And nine states passed referendums asserting individual property rights against the government’s power of eminent domain.

Hat tip to Viking Pundit.

Posted: 11:24 am

Weekend Sector Scan

Energy and Materials still have the strongest looking charts:

 

 

Discretionary, Tech and Financials are a little more rangebound, and the Utilities are still in a bit of a pullback.

 

 

Industrials have been flat for nearly a month, the Staples are a little messy, and Health Care got hammered this week.

 

 

The numbers as the market tries to forge new highs:

 

Sector Symbol 8 Week % Chg. 4 Week % Chg. 1 Week % Chg. YTD % Chg.
Energy XLE +10.8 +6.4 +1.5 +14.2
Consumer Discretionary XLY +8.3 +1.9 +2.0 +14.3
Basic Materials XLB +8.1 +2.9 +1.3 +11.3
Utilities XLU +6.5 +3.9 +0.9 +14.4
Technology XLK +6.4 +1.2 +2.0 +10.5
Industrials XLI +5.4 -0.2 +1.7 +9.8
Financials XLF +4.8 +0.9 +2.0 +13.0
Consumer Staples XLP -0.1 +1.0 +0.3 +9.7
Health Care XLV -2.0 -1.9 -1.8 +2.4

 

Charts courtesy of StockCharts.com

Posted: 10:59 am