Futures are no longer down 100+ and European markets are higher.
I’d like to discuss a movie that I saw last night, The Exterminating Angel. You can catch 5 of 7 parts for free on Youtube. Naturally, I am about to spoil the entire movie for you, so if you care about that sort of thing and want to see the movie, like a child, completely ignorant to the events that will transpire, log off my website now.
The movie is about a dinner party, attended by rich folks, who suddenly, and without explanation, are unable to leave the room after dinner. The facade of dignity is quickly denigrated, and base human nature reigns supreme. A few people kill themselves and they are stuck in this room for at least a week. Outside the estate, there is a carnivale like atmosphere, with police looking at the house, but unable, for reasons unbeknownst to the viewer, to physically enter the house to rescue the idiots who are stuck in a room. They even raised an army detachment to do the deed; but the soldiers lacked the courage to follow through.
Long story short, after the crowd hit rock bottom, they undergo a small ritual and then one brave woman musters up the courage to step outside of the room. No one dared to do it until she went first. After she was successful, they all rushed out and into safety.
At the end of the movie, the same folks are in a church and then the same absurd set of events appears to repeat, the movie ending with a crowd of first class morons unable to leave the church, priest included. Everyone was simply saying stuff like “why don’t we leave after he leaves? Or, “I’ll go when she leaves.”
This is human behavior. As an investor and trader, I’ve seen this idiotic behavior play out in the markets countless times. A small thing snow-balls into a big one, and all of a sudden, CRISIS STRIKES, causing people to sell stocks and get stuck in ‘fag-boxes.’ For example, during the financial crisis everyone was convinced the world was ending. Equity markets plunged, even after bailouts were doled out. Then we’d get news of leaders, like Warren Buffett or David Tepper, stepping into buy ‘cheap shares’ leading to ferocious rallies. The idiots found it safe to leave the room because someone else did it first.
The movie, like the market, is about confidence and dealing with the unknown.
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It has always been this way except
now time is compressed (tradebots, etc.)and the crisis can come and go before one even knows there was a crisis.
It’s best just to treat these things as “noise”.
The type of post I love reading on a Monday morning! Cheers Fly. Excellent. I definitely was one in 2009 that thought the world was ending! Logically no but emotionally yes. Found your blog thru a friend and things changed after that. Thank you.
Thank you for being a great part of the community. You know I don’t dole out compliments liberally.
Die OIL Die
Maestro… 10 year horizon with opportunistic adds as appropriate: $FDN or $HACK? Also, classic post! So true, and so hard to remember in the heat of the moment.
This has a rather thin float, but worth watching, BPTH. Liposomal Grb-2 is interesting. Stock has yet to make a move with pending Phase II trial.
http://finance.yahoo.com/news/bio-path-holdings-liposomal-grb-130000866.html
Greece….a backwards little shithole with nice beaches and furry people that in other realities are known as Ewoks. Today’s thought for the day – don’t ever lend a Greek money.
One of the perennial causes of “End of World Syndrome™” is bloody Jesse Livermore (1877-1940). Despite the fact that he ended up a clinically depressed suicide, people continue to be fascinated by the huge scores he made because he “swam against the crowd” at the historically “right” moment. What lovely, romantic notion! Yes, some people do get rich doing that. Some win 258M to 1 lottery games too.
Your “fagbox” pics = priceless.