Tuesday, February 17, 2009

The Market is Undergoing It's Own Stress Test

The Congress and Senate have the turbines working overtime in an effort print our last dollars so they can save the world and stimulate our broken economy. GM said they may need another $30 billion by 2011 and Chrysler would like a bit more loot" just in case." Glad to hear the unions were sweet enough to maybe abandon the "job bank" grifter hand out. If my job went bust, I'd love to sit in a room, get 90% of my pay too. Hyundai will take your car back if you lose your job "no questions asked", can I short Hyundai? So swell of them. LOL. Does it ever end?

Obama was met with the same podium greeting as all the players in the Bush administration were exposed to, a crashing market when he grabbed the microphone. It's nothing personal, it's just that Christ (or whatever your higher power) coming down from the cross couldn't save this market. The dye is cast, and the move to 6400 DOW and 650 S&P has probably started, unless Obama decides to pay all of our mortgages tomorrow. Don't stand on one foot waiting for anything dramatic other than a possible dead cat bounce. I take that back because bear market bounces as you guys know, can be vicious,and money can be made from both side of this broken beast.

FAZ had a great day and that was my name of choice, no surprise there. I got involved pre-market, which I don't advise anyone to do, but I smelled death and went short GS, IYR and long FAZ. It worked nicely. We are staring into the abyss at this critical juncture in the market, and only the "outside the boxers" will flourish. Opportunity abounds, so stay alert and be smart. I will try and get some charts up later, but when things are falling apart I don't know how much credence it will give. Later

4 comments:

steve said...

Well, he doesn't have to pay my mortgage but finding a buyer for my house would be nice. So we can then buy a house in another city, for cash, and not take a mortgage. So my wife can take the higher paying job that she's been offered, but can't accept, until we move. So I can spend my money in an area more depressed than where I am. So we can help the system along a little.

rahmin said...

all hail.

FAZ, SRS, and EEV - are my three amigos.

that being said, would like to start getting long oil (for long term hold).

1.) does oil continue to fall apart with the market? what would you look at as a queue to load up?

2.) what do you like as a vehicle for long oil? DXO, DIG, USO?

The Premium Collector said...

Just started following your blog and I enjoy it. I've added you to my blog list.

http://optionpremiumcollector.blogspot.com/

upsidetrader said...

rahmin

sorry for delay but i usiually play uso,dig or oih-global demand is non existent-im bearish but will trade it

About Me

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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.