My core positions (WNR, EMN, GSVC, CLF, DECK) are rising and I am happy to take back some of my money. However, I am not deploying any of my cash reserves ahead of the Fed. It’s too big of a gamble and I am not sure Bernanke will do another QE3. The market demands QE3 and if he ignores it, well, we’re gonna fucking tank. In order to motivate me to get back into the market, I need to see some momentum, with conviction. Who knows, perhaps the market will display some real risk appetite after the Fed announcement.
Whoever says they are “looking for the market to throw up” is a fucking imbecile. As of yesterday, we were more oversold than at anytime in recent history, even more so than 2008. To suggest the market needed to show more panic is disingenuous or that person has no idea how to read a tape. We don’t need more blood; we need fucking buyers.
I have a lot of cash on the sidelines and if I deploy it correctly I can easily make back my losses and more. While it’s true, I am all about risk and pushing the envelope, for now, I am more interested in seeing stability, rather than jumping in ahead of real buyers.
I’ve been trading this market since the mid-90’s and I’ve seen really bad drops, namely in ’97, ’98, 2000, 2001 and 2008. Heck, I am a fucking expert in witnessing market calamities. Anyone remember when the market halted trading back in 1998? During yesterday’s futures bloodbath (-300), following a -600+ day, was as bad as it gets. The rout in Asia, then the subsequent drops in Europe, were outright ridiculous. Germany went from +1.5% to -7% in less than 2 hours. That’s capitulation. It’s a washout. After all, Italian and Spanish 10yr yields have been easing. The funding crisis, seemingly, is being addressed. Therefore, as logic dictates, stocks have 1,000 points of near term upside.If you enjoy the content at iBankCoin, please follow us on Twitter