Well, my theory just went out the window.
I fancy this market to be in plunge mode now, all thanks and praise go out to the FUCKING Spaniards and Guidos for that. What is to discuss? Yields are simply to high. Money is being hoarded in well-to-do nations, as represented by negative yields in 6 countries. This doesn’t have the look and feel of something I want to test out for an extended period of time. My guess is that many traders are approaching this market in a similar vein, waiting to see if we bounce. The problem with waiting is the 2nd leg lower might be worse than what you see now.
We know the central banks will not allow the system to fail. We also know Bernanke is ready and willing to start QE3, if we are in dire need. So, having said that, shorting the market is out of the question. The only course of action, frankly, is to raise cash and wait for an opportunity to use it.
My cash position is just under 20%. I will most likely up that level today, not to be hypocritical about my previous bullish stance. Instead, I view my malleability as the primary reason I am still here today, successfully managing money because I ceded to the demands of the market in the past. There are battles to be fought and wars to win. Sometimes it’s best to spectate and let others step on land mines or get eaten alive by rabid wilder beasts.
12 Responses to POOF! Your Bid is Gone
Yeah but KNDI is up!
It’ll be tough for Obama/TheBenBernanke to shove in more money down the QE hole lest he be accused of blatantly interfering in the Nov Elections, Wall Street may be factoring that in, thus the sell off – just my humble opinion
$CRESY $MOS still on two legs
MOS (and CPST) are my only unhedged longs common BTW…
GREAT song pick BTW!
The wildebeest are grazing!!
Good advice. I took a lot of risk off the table before I went on vacation Thursday. Looks like I can buy back what I sold at lower prices and that’s always a good feeling.
EUR is less than a penny from 1.20. I have been calling for this for months.
next stop .80, bitches
Short on Thurs. Doubled down on Fri. Sold this morning. The FLY is right though, there IS a bid under this market.
(Capitan obvious):There’s always a bid… eventually only question is when.
1/3 cash now. Sold RGC. I can’t believe it’s not down 20% or more today. It probably will be.