A lurid and spectacular weekend transpired in celebration of the eve made hallow, with my person enjoying a fantastic masquerade on Friday night, where a multihued and lively crowd of merrymakers adorned in such wondrous garb as to invoke thoughtful consideration of the 16th and 17th centuries, made the association of one another.
The party offered all one could imbibe or feast upon; an assortment of fine beefs garnished in wild mushroom sauce that fell apart against the mere pressure of a fork; and a vast array of sophisticated drinks with components owning names most unrefined men could not begin to pronounce. And, of course, no party is complete without the service of some of the most beautiful women to be found, dressed in attire that left little to the imagination. In fact, I do recall some had no blouse or clothing to speak of, save for some paint that gave way to a garish humor; or else transparent clothing beneath which erotic tidbits of fabric served to make the male guests, and, in some instances I suspect, the women, all the more entertained.
I had a terrible hangover all weekend.
This last week has been defunctive. Thursday and Friday’s action seemed to suggest that the bull market action has been broken, and today’s midday severance of the tape seemed to support that we are either leveling off or beginning the process of decent. Of course, I don’t need to tell any of you that, since you probably noticed that for yourselves already.
Here’s the thing; there are still two very powerful forces to be contended with. The first is the winter rush to warmth and festivity. Why, in the middle of god forsaken winter, we as a culture choose to celebrate so voluptuously I can only attribute to the desire for hard work in the summer months when storage and productivity matters most. However, seeing that in this day and age, no one in our society works, you would think we could at least hold off the binge drinking until the glorious months of summer, whereby we’d actually have something to be ecstatic about.
But I digress…
First, we have the Thanksgiving run, where we indulge ourselves in gluttonous activity all the while preparing for that most sacred of traditions…
The mass of Christ! Also referred to as half of bloody November, all of December, and maybe a few days after New Years just because one tenth of us are unemployed and have nothing better to do, the sacred Christian holiday always spurs enormous activity of excess.
And second, we have an unsupported currency whose fate lies in the hands of men with no desire to see people this holiday season (which, I remind you, is a gateway into the 2010 midterm elections) be unhappy.
Moreover, I anticipate more market intervention in the near future, as the housing sector seems to be experiencing some very turbulent mediums, these days. Why, in New York, just today, and article declared that some uppity styled apartment system intended for retired veterans was nearing what we gentlemen of the market like to refer to as, “…being totally fucked.”
Sadly, this same system is owned by none other than GKK, as well as their parent company SL Green, and half a dozen others (the usual suspects of Fannie and Freddie, of course, prancing ahead of the crowd) whom I’m sure are beginning to wish that Senators and Representatives everywhere would just keel over and die.
That bit of news and the multi-million dollar shit burger of a loss they’re about to eat up did nothing to quell the markets churning stomach. No it did not.
At any rate, in this most perilous crossroads of intentions and conditions, I must remind you, good sirs and madams, of some simple common sense precautions. Please, those of you asleep towards the back of the amphitheatre; your head resting uncomfortably slung over the back of your chair; feet up next to another audience member’s head who is becoming most disgruntled with your thoughtlessness, I deem; it’s time to wake up and listen.
Hedge yourself.
If I am wrong and we take a small loss, it will be nothing next to the pain that will manifest itself should my advice prove right and found to have been ignored. So sell some stocks this week, and take on low Beta short positions, weighted to render your portfolio neutral. If we look to break 10,000 on the Dow, or it can be concluded the S&P and Nasdaq have set in bottoms, then you can remove it and see the wealth flow once more. However, right now is a very disconcerting period where no self respecting trader can claim to know what is going to happen.
Do not get caught with your pants down.
Of course, I will not be following my own advice. And why should I? Our situations are likely completely different. I’ve already taken appropriate actions in case a second plunge should occur, and have liquidated credit waiting on the sidelines. Moreover, I have many sources of steady revenue, from dividends, to wages, to profits, flowing into my portfolio and backing it up.
I don’t care if my positions drop because I still have plenty of muscle to average in and a safety net built in the event of worst case scenarios. I’d venture a guess and say that you haven’t.
In parting friends, we spent the preponderance of the previous two years crusading for wealth and power. Now is the time to secure your stronghold and withdraw to a place of strength, where new campaigns can be financed and embarked upon. Take a well deserved rest until you know what to do.
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