The Wall Street Bailout explains the stock market crash, the worst stock market crash since 1929 - who's to blame, and how to profit from the stock market crash!
Monday, October 27, 2008
Tuesday, October 21, 2008
Stock Market Commentary 10/21/08 - Not Bullish, But Maybe Constructive...
For starters, here's a very funny video, lyrics re-written by a member of our live stock market chatroom.
While Tuesday certainly wasn’t a bullish day for the stock market, I’m going to go out on a limb and call it a constructive day. Although there were pretty big losses at the end of the day, and a lot of the selling came in the last hour again, volume was even lighter than it was on yesterday’s up move, and the wild swings, although still there, seem to be calming down a bit. I take this as people starting to come to terms with the situation, and starting to make slightly more rational decisions regarding their investments, rather than the massive panic buying and panic selling that has been the 800 pound gorilla in the room for the last few weeks.
That’s not to say things are getting any better from an economic standpoint, or that this market won’t see any more panic buying or selling, as we are still at extreme levels from a number of perspectives, but the action this week does hint at some form of resolution being worked out for the market. That is something to be optimistic about, as is the fact that at the time of this writing, AAPL is up 10% in after hours trading, and YHOO is up better than 5%.
The VIX didn’t gain much back after yesterday’s nearly 25% haircut. That’s another reason to be optimistic about where this market seems to be going. A nice, orderly consolidation/ pull back would be in keeping with our thinking that the markets are trying to stabilize here.
The Dow fell 231.77, or 2.50 percent, to 9,033.66, on even less volume than Monday, when the volume was relatively light compared to recent sessions. While anything can still happen as the market digests all the economic news that has been thrown at it recently, we can see the swings getting more & more narrow in range, and the daily chart shows a bit of a triangle formation starting to set up.
The Standard & Poor's 500 fell 30.35, or 3.08 percent, to 955.05. On the daily chart you can see the same ascending triangle pattern forming, but below is the hourly chart, which shows what looks like pretty solid support right around 950.
The Nasdaq composite index shed 73.35, or 4.14 percent, to 1,696.68. the 15 minute chart shows a slight breach of an intraday double bottom, but the after hours trading in AAPL & YHOO would seem to indicate a higher open for the index, barring any real turnarounds.
Light, sweet crude fell $3.36 to settle at $70.89 barrel on the New York Mercantile Exchange. USO fell nearly 5% on the day, but is holding above recent lows. We could see a consolidation here, which would probably be a healthy thing.
Gold fooled us last night, metals looked very nice yesterday and took a hit today. However gold didn’t break the recent lows either, and if it does, the September lows aren’t far off either.
Our portfolio stocks remain light into what is still a very choppy market. We are going to keep things pretty light until this thing stabilizes a bit more, and will continue to trim losses and take profits wherever applicable. As such we are going to add one new short to the TBT list to compliment our one long, which we are raising the stop on to greatly reduce the downside exposure after a weak close today. We are very optimistic about the way this market is acting, and are hoping that we will see some of the best tradin conditions of the year in the next month or two, but patience will be required. There are some really nice setups in the watchlists above for intraday trading purposes tomorrow, of which there should be plenty. Have a great evening, see you tomorrow.
While Tuesday certainly wasn’t a bullish day for the stock market, I’m going to go out on a limb and call it a constructive day. Although there were pretty big losses at the end of the day, and a lot of the selling came in the last hour again, volume was even lighter than it was on yesterday’s up move, and the wild swings, although still there, seem to be calming down a bit. I take this as people starting to come to terms with the situation, and starting to make slightly more rational decisions regarding their investments, rather than the massive panic buying and panic selling that has been the 800 pound gorilla in the room for the last few weeks.
That’s not to say things are getting any better from an economic standpoint, or that this market won’t see any more panic buying or selling, as we are still at extreme levels from a number of perspectives, but the action this week does hint at some form of resolution being worked out for the market. That is something to be optimistic about, as is the fact that at the time of this writing, AAPL is up 10% in after hours trading, and YHOO is up better than 5%.
The VIX didn’t gain much back after yesterday’s nearly 25% haircut. That’s another reason to be optimistic about where this market seems to be going. A nice, orderly consolidation/ pull back would be in keeping with our thinking that the markets are trying to stabilize here.
The Dow fell 231.77, or 2.50 percent, to 9,033.66, on even less volume than Monday, when the volume was relatively light compared to recent sessions. While anything can still happen as the market digests all the economic news that has been thrown at it recently, we can see the swings getting more & more narrow in range, and the daily chart shows a bit of a triangle formation starting to set up.
The Standard & Poor's 500 fell 30.35, or 3.08 percent, to 955.05. On the daily chart you can see the same ascending triangle pattern forming, but below is the hourly chart, which shows what looks like pretty solid support right around 950.
The Nasdaq composite index shed 73.35, or 4.14 percent, to 1,696.68. the 15 minute chart shows a slight breach of an intraday double bottom, but the after hours trading in AAPL & YHOO would seem to indicate a higher open for the index, barring any real turnarounds.
Light, sweet crude fell $3.36 to settle at $70.89 barrel on the New York Mercantile Exchange. USO fell nearly 5% on the day, but is holding above recent lows. We could see a consolidation here, which would probably be a healthy thing.
Gold fooled us last night, metals looked very nice yesterday and took a hit today. However gold didn’t break the recent lows either, and if it does, the September lows aren’t far off either.
Our portfolio stocks remain light into what is still a very choppy market. We are going to keep things pretty light until this thing stabilizes a bit more, and will continue to trim losses and take profits wherever applicable. As such we are going to add one new short to the TBT list to compliment our one long, which we are raising the stop on to greatly reduce the downside exposure after a weak close today. We are very optimistic about the way this market is acting, and are hoping that we will see some of the best tradin conditions of the year in the next month or two, but patience will be required. There are some really nice setups in the watchlists above for intraday trading purposes tomorrow, of which there should be plenty. Have a great evening, see you tomorrow.
Friday, October 3, 2008
Monday, September 29, 2008
Wednesday, September 24, 2008
An Urgent Message From Secretary Hank Paulson
Dear American:
I need to ask you to support an urgent secret business relationship with a transfer of funds of great magnitude.
I am Ministry of the Treasury of the Republic of America. My country has had crisis that has caused the need for large transfer of funds of 800 billion dollars US. If you would assist me in this transfer, it would be most profitable to you.
I am working with Mr. Phil Gram, lobbyist for UBS, who will be my replacement as Ministry of the Treasury in January. As a Senator, you may know him as the leader of the American banking deregulation movement in the 1990s. This transactin is 100% safe.
This is a matter of great urgency. We need a blank check. We need the funds as quickly as possible. We cannot directly transfer these funds in the names of our close friends because we are constantly under surveillance. My family lawyer advised me that I should look for a reliable and trustworthy person who will act as a next of kin so the funds can be transferred.
Please reply with all of your bank account, IRA and college fund account numbers and those of your children and grandchildren to wallstreetbailout@treasury.gov so that we may transfer your commission for this transaction. After I receive that information, I will respond with detailed information about safeguards that will be used to protect the funds.
Yours Faithfully Minister of Treasury Paulson
I need to ask you to support an urgent secret business relationship with a transfer of funds of great magnitude.
I am Ministry of the Treasury of the Republic of America. My country has had crisis that has caused the need for large transfer of funds of 800 billion dollars US. If you would assist me in this transfer, it would be most profitable to you.
I am working with Mr. Phil Gram, lobbyist for UBS, who will be my replacement as Ministry of the Treasury in January. As a Senator, you may know him as the leader of the American banking deregulation movement in the 1990s. This transactin is 100% safe.
This is a matter of great urgency. We need a blank check. We need the funds as quickly as possible. We cannot directly transfer these funds in the names of our close friends because we are constantly under surveillance. My family lawyer advised me that I should look for a reliable and trustworthy person who will act as a next of kin so the funds can be transferred.
Please reply with all of your bank account, IRA and college fund account numbers and those of your children and grandchildren to wallstreetbailout@treasury.gov so that we may transfer your commission for this transaction. After I receive that information, I will respond with detailed information about safeguards that will be used to protect the funds.
Yours Faithfully Minister of Treasury Paulson
Tuesday, September 23, 2008
If only I was in the Senate, what I would have asked Paulson & Bernanke...
I’m almost embarrassed to admit that I spent most of my day glued to cnbc… not that I was looking for investment advice or anything, but I really wanted to see how Paulson, Bernanke, and Cox pitched their bailout plan to the Senate committee, and I wanted to see if any of the senators in the committee asked any of the questions that I would have - actually only one question really, namely:
“Why, if you guys are the ones who allowed this to happen in the first place, telling us the entire way down that everything was fine, the economic system was strong, take a long term outlook, etc, should we have enough trust in you to fork over 700 billion - that’s right - BILLION - dollars, on your word that it will now fix what you told us all along wasn’t broken? And if it doesn’t work, aren’t we at the same place we are at right now, minus nearly a trillion dollars?!?!
Oh and by the way, Hank, how much do you stand to lose if your old firm, Goldman Sachs goes under, and how does that play out in your scenario about forking over this money to you ASAP without investigating the situation?
Oh and one more thing - why is it, that the hard working, tax paying members of my district, many of whom just saw their net worth cut by substantial amounts listening to the likes of you clowns, and the clowns on CNBC telling them to buy & hold, that the economy was still sound, have to bail your old buddies out of their bad investments? Has Goldman, or Merrill, or any other broker, bank, or fund ever bailed them out of a bad investment? Doesn’t it specifically say, right from the terms of use on Goldman’s website that:
“No determination of suitability has been made; not all risks are disclosed; private advisors should be consulted: The fact that GS has made the data and services provided on this Web site available to you constitutes neither a recommendation that you enter into a particular transaction nor a representation that any product described on this Web site is suitable or appropriate for you. Many of the products described on this Web site involve significant risks, and you should not enter into any transactions unless you have fully understood all such risks and has independently determined that such transactions are appropriate for you. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or complete discussion of the risks which are mentioned. You should neither construe any of the material contained herein as business, financial, investment, hedging, trading, legal, regulatory, tax, or accounting advice nor make this service the primary basis for any investment decisions made by or on behalf of you, your accountants, or your managed or fiduciary accounts, and you may want to consult your business advisor, attorney, and tax and accounting advisors concerning any contemplated transactions.
No liability for content; no liability arising from use: Goldman Sachs shall have no liability, contingent or otherwise, to the user or to third parties, or any responsibility whatsoever, for the failure of any connection or communication service to provide or maintain user's access to this service, or for any interruption or disruption of such access or any erroneous communication between Goldman Sachs and user, regardless of whether the connection or communication service is provided by Goldman Sachs or a third-party service provider. Goldman Sachs shall have no liability, contingent or otherwise, to the user or to third parties, for the correctness, quality, accuracy, timeliness, pricing, reliability, performance, continued availability, completeness or delays, omissions or interruptions in the delivery of the data and services available herein or for any other aspect of the performance of this service or for any failure or delay in the execution of any transactions through this service. In no event will Goldman Sachs be liable for any special, indirect, incidental or consequential damages which may be incurred or experienced on account of the user using the data or services made available herein, even if Goldman Sachs has been advised of the possibility of such damages. Goldman Sachs will have no responsibility to inform the user of any difficulties experienced by Goldman Sachs or third parties with respect to the use of the services or to take any action in connection therewith.”
Doesn’t that pretty well state that “Hey, you’re on your own here pal, and if you screw up, we’re not going to take any responsibility whatsoever to bail you out, so do your homework before investing your money.”? So Hank, why is it that if they make it abundantly clear that while they made billions of dollars on the backs of the hardworking members of my district but clearly state that they will not back up their bad investments, why is it that the taxpaying members of my district should be liable to bail them out?”
Now that’s what I would have asked, and while there were a few questions that did touch on those subjects, most were sidestepped with the kind of stuttering genius one would expect from ole Hank. Not once did we really get a clear answer from anyone on anything, except the fact that we were all in really big trouble and we needed to approve this little loan yesterday or we’re all going down fast. And sadly, most of the senators there have little to no idea as to how the markets really work, and therefore weren’t really in a position in the debate to call these guys out on anything.
Meanwhile, the markets were holding up surprisingly well throughout most of it. At it’s high, the Dow was up over 100 points, and the NASDAQ was up about 20 points at the days high.
But by the last hour of trading the heavy selling started again. Although the volume has been very light over the past two days, the fact that many investors are simply sitting o the sidelines until this whole thing plays out, especially with the newly imposed ban on short selling (discussed in this weekends market outlook). All market averages dropped better than a percent on the day when it was all said & done, not a single one of them with any viable support before last weeks lows.
Now this looks like quite a bearish situation to me, and our bearish outlook on this market has served us well, I seriously doubt you’ll find many out there posting the kind of gains that we have of late in this market, and looking at our portfolio versus the market overall for the year it’s pretty clear that buy & hold is no longer a viable option.
That said logic has certainly been sparse to non existent as of recent months, so a big move to the upside cannot be ruled out here. As such we are going to add one new long to the mix to keep the portfolio a little more hedged while remaining light and with a bias to the short side. The commodity rally didn’t follow through into today, but we are still looking at many oil, gold, and silver (congrats to stock market chat room member art for a great trade on SIL today, while I’m on the topic of silver) to provide good trades to the upside at some point in the next few days, possibly after a bit more consolidation. All were overbought coming in, and some profit taking is a fairly healthy thing as we see it. There are a number of nice setups both long & short listed in the watch lists above for potential intraday trades tomorrow, but remember to keep a close eye on things, the reversals can be fast and unforgiving if you are complacent. That said there are plenty of great opportunities out there, and we’ll keep doing our best to find them for you. Have a great evening, happy trading!
Quote of the Day
"I'm not concerned about all hell breaking loose, but that a PART of hell will break loose... it'll be much harder to detect."
George Carlin (1937 - 2008)
“Why, if you guys are the ones who allowed this to happen in the first place, telling us the entire way down that everything was fine, the economic system was strong, take a long term outlook, etc, should we have enough trust in you to fork over 700 billion - that’s right - BILLION - dollars, on your word that it will now fix what you told us all along wasn’t broken? And if it doesn’t work, aren’t we at the same place we are at right now, minus nearly a trillion dollars?!?!
Oh and by the way, Hank, how much do you stand to lose if your old firm, Goldman Sachs goes under, and how does that play out in your scenario about forking over this money to you ASAP without investigating the situation?
Oh and one more thing - why is it, that the hard working, tax paying members of my district, many of whom just saw their net worth cut by substantial amounts listening to the likes of you clowns, and the clowns on CNBC telling them to buy & hold, that the economy was still sound, have to bail your old buddies out of their bad investments? Has Goldman, or Merrill, or any other broker, bank, or fund ever bailed them out of a bad investment? Doesn’t it specifically say, right from the terms of use on Goldman’s website that:
“No determination of suitability has been made; not all risks are disclosed; private advisors should be consulted: The fact that GS has made the data and services provided on this Web site available to you constitutes neither a recommendation that you enter into a particular transaction nor a representation that any product described on this Web site is suitable or appropriate for you. Many of the products described on this Web site involve significant risks, and you should not enter into any transactions unless you have fully understood all such risks and has independently determined that such transactions are appropriate for you. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or complete discussion of the risks which are mentioned. You should neither construe any of the material contained herein as business, financial, investment, hedging, trading, legal, regulatory, tax, or accounting advice nor make this service the primary basis for any investment decisions made by or on behalf of you, your accountants, or your managed or fiduciary accounts, and you may want to consult your business advisor, attorney, and tax and accounting advisors concerning any contemplated transactions.
No liability for content; no liability arising from use: Goldman Sachs shall have no liability, contingent or otherwise, to the user or to third parties, or any responsibility whatsoever, for the failure of any connection or communication service to provide or maintain user's access to this service, or for any interruption or disruption of such access or any erroneous communication between Goldman Sachs and user, regardless of whether the connection or communication service is provided by Goldman Sachs or a third-party service provider. Goldman Sachs shall have no liability, contingent or otherwise, to the user or to third parties, for the correctness, quality, accuracy, timeliness, pricing, reliability, performance, continued availability, completeness or delays, omissions or interruptions in the delivery of the data and services available herein or for any other aspect of the performance of this service or for any failure or delay in the execution of any transactions through this service. In no event will Goldman Sachs be liable for any special, indirect, incidental or consequential damages which may be incurred or experienced on account of the user using the data or services made available herein, even if Goldman Sachs has been advised of the possibility of such damages. Goldman Sachs will have no responsibility to inform the user of any difficulties experienced by Goldman Sachs or third parties with respect to the use of the services or to take any action in connection therewith.”
Doesn’t that pretty well state that “Hey, you’re on your own here pal, and if you screw up, we’re not going to take any responsibility whatsoever to bail you out, so do your homework before investing your money.”? So Hank, why is it that if they make it abundantly clear that while they made billions of dollars on the backs of the hardworking members of my district but clearly state that they will not back up their bad investments, why is it that the taxpaying members of my district should be liable to bail them out?”
Now that’s what I would have asked, and while there were a few questions that did touch on those subjects, most were sidestepped with the kind of stuttering genius one would expect from ole Hank. Not once did we really get a clear answer from anyone on anything, except the fact that we were all in really big trouble and we needed to approve this little loan yesterday or we’re all going down fast. And sadly, most of the senators there have little to no idea as to how the markets really work, and therefore weren’t really in a position in the debate to call these guys out on anything.
Meanwhile, the markets were holding up surprisingly well throughout most of it. At it’s high, the Dow was up over 100 points, and the NASDAQ was up about 20 points at the days high.
But by the last hour of trading the heavy selling started again. Although the volume has been very light over the past two days, the fact that many investors are simply sitting o the sidelines until this whole thing plays out, especially with the newly imposed ban on short selling (discussed in this weekends market outlook). All market averages dropped better than a percent on the day when it was all said & done, not a single one of them with any viable support before last weeks lows.
Now this looks like quite a bearish situation to me, and our bearish outlook on this market has served us well, I seriously doubt you’ll find many out there posting the kind of gains that we have of late in this market, and looking at our portfolio versus the market overall for the year it’s pretty clear that buy & hold is no longer a viable option.
That said logic has certainly been sparse to non existent as of recent months, so a big move to the upside cannot be ruled out here. As such we are going to add one new long to the mix to keep the portfolio a little more hedged while remaining light and with a bias to the short side. The commodity rally didn’t follow through into today, but we are still looking at many oil, gold, and silver (congrats to stock market chat room member art for a great trade on SIL today, while I’m on the topic of silver) to provide good trades to the upside at some point in the next few days, possibly after a bit more consolidation. All were overbought coming in, and some profit taking is a fairly healthy thing as we see it. There are a number of nice setups both long & short listed in the watch lists above for potential intraday trades tomorrow, but remember to keep a close eye on things, the reversals can be fast and unforgiving if you are complacent. That said there are plenty of great opportunities out there, and we’ll keep doing our best to find them for you. Have a great evening, happy trading!
Quote of the Day
"I'm not concerned about all hell breaking loose, but that a PART of hell will break loose... it'll be much harder to detect."
George Carlin (1937 - 2008)
Monday, September 22, 2008
Stock Market Commentary 9/22/08
From the weekend market outlook:
“It just seems to me to be way too similar to your average hail mary play in football - with their back to the wall the losing team just chucks something up there, as far out as you can get, then looks to the heavens and hopes for a miracle. In some rare cases when the smoke clears the losing team comes up with that miracle, but in most cases they don’t. In any case the fans of the team throwing the hail mary always cheer the loudest right when the ball gets chucked up in the air, and my fear is that the strength we saw from mid-Thursday until Fridays close was nothing more than the cheer for the chuck.
It would stand to reason that this ban on the short sales in the financial sectors is going to make an already volatile and shaky sector even more so. If funds and traders can’t hedge their long positions with shorts they are going to be forced to unload the shares more frequently and quite possibly causing sharp sell offs, and on the other hand you will not see the huge short covering rallies when these battered financial stocks muster up a rally, or announce some news that sends it flying, because there are no longer the ready made buyers that short covering creates. And while this is just my opinion, I think as a result of this we’re going to see a lot less volume in the financial stocks as lots of would be investors will take their money elsewhere, especially funds and big money.”
That scenario seemed to play out about as expected, for the broader market as well as just the financial sector. While it is a bit disheartening and depressing to think about the implications on the economy if this “hail mary” play doesn’t work, it does put a smile on my face getting to say “told ya so” to the idiot policymakers who thought that banning short selling was going to be the answer to the selling in the financial stocks.
Monday also market another very bullish day for commodities, particularly oil, which was at one point up over $25 a barrel. Even with it backing off it’s highs a bit, Monday was the biggest one day gain in crude oil in history. Gold and silver both also posted some nice gains on the day, our weekend long watch lists were loaded with commodity plays, and they are again tonight.
The Dow fell 372.75, or 3.27 percent, to 11,015.69. The end of last week marked the Dow's best two-day point gain since March 2000, so some selling was to be expected, but on this scale it was not a healthy pullback. Although volume was low, this was probably due to a lot of traders just not playing due to these new rules, especially in the financial sector. We did find a little round number support at 11,000, so perhaps that will hold, but that would probably be temporary.
The Standard & Poor's 500 index fell 47.99, or 3.82 percent, to 1,207.09, and the Nasdaq composite index fell 94.92, or 4.17 percent, to 2,178.98.Both erased all of Fridays gains and then some, and look like they want to at least retest last weeks lows.
The Vix also did what we expected, stating that the pullback that ended the week was a potentially bullish setup, and it looks even more bullish now. It feels like we were getting close to the kind of panic selling that would be needed to hammer out a bottom before the rumors started flying last week sending the market flying as well, and we are thinking we will retest last weeks highs on the Vix at some point soon.
Our portfolio stocks once again navigated the market changes very well, closing the last profitable long position and getting into some new short positions this morning. We are still bearish on the overall market after today’s showing, but the volatility of late has to be respected, so we are going to remain somewhat hedged, so are adding a new long to trigger in case we get another reversal. There were a few more shorts in the watch lists above than longs, but oil and precious metals were looking nice and should provide some nice trading opportunities over the next few days. We are truly into “uncharted” territory here, and it should be fun to watch this whole situation play out. Thanks for watching with us, have a great night.
Quote of the Day
"The most beautiful thing we can experience is the mysterious. It is the source of all true art and science."
Albert Einstein (1879 - 1955)
“It just seems to me to be way too similar to your average hail mary play in football - with their back to the wall the losing team just chucks something up there, as far out as you can get, then looks to the heavens and hopes for a miracle. In some rare cases when the smoke clears the losing team comes up with that miracle, but in most cases they don’t. In any case the fans of the team throwing the hail mary always cheer the loudest right when the ball gets chucked up in the air, and my fear is that the strength we saw from mid-Thursday until Fridays close was nothing more than the cheer for the chuck.
It would stand to reason that this ban on the short sales in the financial sectors is going to make an already volatile and shaky sector even more so. If funds and traders can’t hedge their long positions with shorts they are going to be forced to unload the shares more frequently and quite possibly causing sharp sell offs, and on the other hand you will not see the huge short covering rallies when these battered financial stocks muster up a rally, or announce some news that sends it flying, because there are no longer the ready made buyers that short covering creates. And while this is just my opinion, I think as a result of this we’re going to see a lot less volume in the financial stocks as lots of would be investors will take their money elsewhere, especially funds and big money.”
That scenario seemed to play out about as expected, for the broader market as well as just the financial sector. While it is a bit disheartening and depressing to think about the implications on the economy if this “hail mary” play doesn’t work, it does put a smile on my face getting to say “told ya so” to the idiot policymakers who thought that banning short selling was going to be the answer to the selling in the financial stocks.
Monday also market another very bullish day for commodities, particularly oil, which was at one point up over $25 a barrel. Even with it backing off it’s highs a bit, Monday was the biggest one day gain in crude oil in history. Gold and silver both also posted some nice gains on the day, our weekend long watch lists were loaded with commodity plays, and they are again tonight.
The Dow fell 372.75, or 3.27 percent, to 11,015.69. The end of last week marked the Dow's best two-day point gain since March 2000, so some selling was to be expected, but on this scale it was not a healthy pullback. Although volume was low, this was probably due to a lot of traders just not playing due to these new rules, especially in the financial sector. We did find a little round number support at 11,000, so perhaps that will hold, but that would probably be temporary.
The Standard & Poor's 500 index fell 47.99, or 3.82 percent, to 1,207.09, and the Nasdaq composite index fell 94.92, or 4.17 percent, to 2,178.98.Both erased all of Fridays gains and then some, and look like they want to at least retest last weeks lows.
The Vix also did what we expected, stating that the pullback that ended the week was a potentially bullish setup, and it looks even more bullish now. It feels like we were getting close to the kind of panic selling that would be needed to hammer out a bottom before the rumors started flying last week sending the market flying as well, and we are thinking we will retest last weeks highs on the Vix at some point soon.
Our portfolio stocks once again navigated the market changes very well, closing the last profitable long position and getting into some new short positions this morning. We are still bearish on the overall market after today’s showing, but the volatility of late has to be respected, so we are going to remain somewhat hedged, so are adding a new long to trigger in case we get another reversal. There were a few more shorts in the watch lists above than longs, but oil and precious metals were looking nice and should provide some nice trading opportunities over the next few days. We are truly into “uncharted” territory here, and it should be fun to watch this whole situation play out. Thanks for watching with us, have a great night.
Quote of the Day
"The most beautiful thing we can experience is the mysterious. It is the source of all true art and science."
Albert Einstein (1879 - 1955)
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