I knew the market was due to spike, especially after seeing Cramer capitulate on television last night, sounding the alarms of doom and gloom. Not to beat up on the guy, but he’s been 100% wrong on the markets, since 2007.
Today’s move by the Fed to add liquidity into the AAA mortgage market is brilliant. Furthermore, I think it will help add liquidity, in a big way.
The near term game plan is simple: If you built up a huge cash position, like “The Fly,” sit back and enjoy watching the idiots scramble for sea shells. If you are heavily short, get the fuck out of the way, for your head is about to be separated from your torso.
This type of move by the Fed can underpin a sustainable move in the markets, especially since everyone is caught leaning short.
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Cramer decided to add to Buffet’s strategy of adding “doom and gloom” to leep prices low. Cramer effect is now in reverse.
Oh The Humanity!
(behold the carnage)
Question for the almighty Fly:
No doubt bullish for Financials (covered my LEH at 43.00, SKF at 135 yesterday)…but isnt this BEARISH for commodities…AKA SMN, since it looks like the FED aren’t going to cut as aggressive in the upcoming week and possibly repress the downfall of the dollar?
Bear in mind, most, if all, the only thing driving commodities/oil is the fucking dollar downfall. Fundamentals are blown to shit.
Anybody saw the $/euro? Talk about getting fucked over…
So your going to blow out of smn too?
Boom.. did you take that penny stock trade I talked about Friday. They are on an uptrend and announced some more good news today.
The ruro longs have been up a penny every day – this is just a chink in their armor. Axel Weber told the bearded clown to go fuckle himself this morning, no interest rate cut, and look out above.
No, I will not sell SMN. I will use my cash reserves to buy it on dips.
Oil and gold are up today.
Had dinner with a bong trader friend last night. He said the fed needed to backstop 500 – 1 trillion for the banks. So 200 billion is a step in that direction.
Juice:
“Bong” trader? There’s a market for that? Is that what Greenwriter does in his spare time?
I went to law school in the mid-70’s and my neighbor in the dorms was a bong trader. He had a huge collection. Very pretty colors. He is now a Judge on the US Circuit Court of Appeals (one step below US Supreme Ct.). I wonder if I should have testified at his confirmation hearing.
TC.. throwing the book at them potheads now, is he?
This is certainly a morning to remember for the douchebags – can’t make money on our own, but the bearded cumgoon will help us anyway.
Bernanke’s beard is not made from hair, but Government quality paper.
Calvino, what on earth is a “cumgoon”???
I’m a little confused here –
Will this program raise the capital adequacy ratios of banks? It’s not actually taking the bad stuff off their balance sheets, is it?
Reversal of the reversal? Then probably another reversal. Just like Vegas.
Calvino pens a creative keyboard.
cumgoon is the first incestuous cousin of the cumguzzler, who is now at the Treasury.. depends on how they prefer their elixir of life.
Being the inquiring mind that I am, I found a close word on the books over at ye old urban dictionary: cumgoblin
http://www.urbandictionary.com/define.php?term=cumgoblin
I’m telling you…we can’t have both ways…either commodities go up or stocks go up…we cant have both.
Fly is a friggin genius – how does he do it? I thought he made a mistake selling SKF yesterday – I thought it might gap up up today. Buy SKF @ $125???
Is there any manipulation in TMA?
Big Mike: It’s called inflation. The hard assets of companies increase in nominal terms as wells as commodities. Look at the market in the past five years. Stock market has been flat on real terms but going up on nominal terms — all the while commodities shooting up.
For those of you who think the Fed isn’t going to bail out the banks blah blah blah, remind yourself who ultimately has the voting power in the Federal Reserve. They’ll do *anything* to save the banks, which is why I dabble in SRS but avoid SKF like the plague.
Some people think that they are way too smart. They think their comments are wonders of the world! Dudes don’t be so self-confident.