If there is one truth in "mother market" it's the laws of buyers and sellers. The flight to quality means that "no one wants equities". 6 months ago, every day institutional investors would flock in every day and buy up equities, People keep asking "where is the volume". as you see the falling bond yield curve, at the 2 and 3 year level. even at these levels it's obvious where the money is going.
The obvious thing to me is that the music has stopped, and it's just a matter of time before the slow money realizes it, and runs for a chair.
I've re initiated some smaller short positions.
com'on market give it up. the other options are so much darker.
Financial history doesn't repeat itself, but it often rhymes. You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.
J. P. Morgan
Tuesday, October 23, 2007
laws of supply and demand
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