Tuesday, August 14, 2007
The Appearance of Being Oversold
Lots of blood letting. Lots of liquidations, followed up by bankruptcies and rumors of bankruptcies.
In short, this is what fear looks like. Apparently, the 'credit crunch' is so bad, it is poised to cripple the banking system. This is amateur hour.
Look, during deep corrections, 1929 style crashes seem possible. Everyone is bearish. There is no upside.
This thought process, of course, is dangerously wrong. While it's nonsensical to hope for a v shape recovery; it's equally stupid to short into this much weakness.
As a result, I have closed out OEX put positions and 3/4th's of my LAZ short. I will keep my SRS long, just in case LEH files bankruptcy.
Har, har, har.
My sense, now is a good time to buy the dips, for a trade. Should this dip buying adventure prove wrong, ensure tight stops.
NOTE: My buy list includes FMCN, GLF, NGS, MVIS, LNN, RS and HANS.
In short, this is what fear looks like. Apparently, the 'credit crunch' is so bad, it is poised to cripple the banking system. This is amateur hour.
Look, during deep corrections, 1929 style crashes seem possible. Everyone is bearish. There is no upside.
This thought process, of course, is dangerously wrong. While it's nonsensical to hope for a v shape recovery; it's equally stupid to short into this much weakness.
As a result, I have closed out OEX put positions and 3/4th's of my LAZ short. I will keep my SRS long, just in case LEH files bankruptcy.
Har, har, har.
My sense, now is a good time to buy the dips, for a trade. Should this dip buying adventure prove wrong, ensure tight stops.
NOTE: My buy list includes FMCN, GLF, NGS, MVIS, LNN, RS and HANS.
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"My buy list includes FMCN, GLF, NGS, MVIS, LNN, RS and HANS."
Where the hell is ALGN. Stop messing around with you Doppler Radar and get back to "coin banking" research.
Where the hell is ALGN. Stop messing around with you Doppler Radar and get back to "coin banking" research.
My buy list right now consists of tech stocks that pay dividends:
NTE, UNTD, DRAM, AMSWA, CREAF, APSG, PNTX, MCHP
Tech is undervalued, better off fundamentally than most of the other sectors, and has great exposure to emerging markets.
NTE, UNTD, DRAM, AMSWA, CREAF, APSG, PNTX, MCHP
Tech is undervalued, better off fundamentally than most of the other sectors, and has great exposure to emerging markets.
Looks like a triple bottom on the chart. Sweet. Tight stops are for pussies. In a market like this, a stop loss will be just like panic – it will sell at the fucking bottom.
Notice how when you think you know the value of something at a department store, and when they have a sale you run out go buy it? Why does it work the complete opposite in markets? I have been loading up on BWP, EPD, PAA, MVIS, and BRN. Buy BRN at high $18s, sell at $21-22. This stock is a day traders dream.
PTNX, not PNTX
Those names are short term trades in addition to long-term, big caps:
AAPL, CSCO, ORCL, RIMM, QCOM, etc.
Those names are short term trades in addition to long-term, big caps:
AAPL, CSCO, ORCL, RIMM, QCOM, etc.
I just bought XLF because Cramer said not to. That fucker says to buy a stock when its already had a run and to sell a stock when its already collapsed. Its like Alice In Wonderland looking through the mirror.
Problem is, every indicator I have does not show oversold for the Dow S&P or Comp. Another day like today and it will be close to oversold.
Recent Fed injection of liquidity (except for today), should have touched off a rally in the banks. Not happening. We are not at bottom.
We're going lower, bitches.
We're going lower, bitches.
Every major index is striking 20 on the slow stochastic indicator, which is severe bounce territory and has virtually marked every recent bounce from oversold on the major indices for the past several months.
All news withstanding; Expect a bounce.
All news withstanding; Expect a bounce.
I'm glad you wrote that. I was going to write a comment like that 2 nights ago to the person complaining that a Fed easing would cause the dollar to depreciate. If you think easing is bad for the market, now you get to see what a lack of liquidity can do. With the bullshit walls of containment ("it's only subprime") coming down, any business that requires financing is in question now.
Somehow, I don't think Robert Rubin would have let this spin out of control like the current set of "experts."
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Somehow, I don't think Robert Rubin would have let this spin out of control like the current set of "experts."
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