Saturday, January 12, 2008

Stock Market and What If ?

I've been wrong before but this is what I think has a decent chance of shaping up. They say you can't have a bull market without tech and financials. We did fine without the financials this year before the market decided to cave. Technology has certainly corrected, just look at AAPL RIMM, etc. But what if the fed cuts 50bp's, sure some say it's a given and some say it's too late anyway, but what if technology starts to come back?(Macworld Tuesday) I think the combination of the financials bottoming,tech rebounding, and a 50 bp cut could cure this hangover. It will take nothing more than a blink to get the shorts running scared. Many times towards the end of last week i saw massive knee jerk pops in stocks because the market hinted at a rally. I think fear is a much more powerful emotion than greed and when this turns we could see a short squeeze the likes of which we haven't seen in quite a while.
Just sayin


About Me

My photo
I am a former hedge fund manager, broker and capital markets dude who now trades for his own account. I love what I do. I will try to post some stocks and an occasional chart that looks attractive for entry.I will also try to point out the idiocy of conventional wisdom and the lack of value added by the mainstream financial media. These postings should not be viewed as recommendations.