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

"Sell down to your sleeping point"

Wednesday, October 8, 2008

My word

Global Rate cut!!! How am I so smart!!! Did the ECB cut too?

9 comments:

Tony said...
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Tony said...

Everyone cut half-point, except Japan of course.

The last bullet.

1. How many longs will sell into this rally?

2. By day's end, will market be up or down?

Tony said...

On the other hand: look at graph of 1907 Panic. This banking crisis is very similar to this event. Where are we in this graph?

http://tinyurl.com/52j7qa

Eric said...

The problem is that that chart it takes 2-3 years for a 50% correction.

We are at 37% and we are 1 year in.

in 73 it took till 75 to get a 40% correction.

we are in an epic panic.

Eric said...

so tony.... we have another half bullet... LOL.

Most the panic right now is international.... Glad to see the dumb ass de-couplers get it hard core.

I still stick with my monday tuesday low, We can hope we end the day flat... and the week...

Tony said...

So, where are we in the curve? By the time JP Morgan, Rockefeller came into the money markets and backstopped banks, the market turned up quickly. V-shaped.

Eric said...

Sorry... I'll also say My best guess is we will be lower than we open.

There is still "hedge fund" delveveredgeing we are doing.

Eric said...

That kind of money isn't out there, unless you count the fed and treasury....

I have a hard time speculating here.

We are in such uncharted waters...

This is all so crazy, The thing I fear is continued Idiocy by our legislative branch... and some stupid move to extend the weakness.

I absolutely agree, we should see a V bottom based on economics.

But I still see some systemic 40 year flood.

Tony said...

Two issues regarding long and short term investment.

1.Long term, if one has a significant amount in retirement accounts that is not traded regularly, this seems like a reasonable time to put back a bit into the market. Five years from now, we are definitely higher and maybe a lot higher.

2. Short term, there will likely be better entry points for long positions. The volatility is tough to trade with such huge moves. Fundamentals are useless and technicals are like ride a bucking bronco. Cash is nice, but not much fun.

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