For me, the hard part is to sit with losses, no matter how painful they are. Meaning: it’s easy to cut losses and go short or follow the trend. It’s hard to sit there and say “fuck you asshole, I ain’t selling GE down here.”
That’s where most people start blowing goats (while in a losing position). They get all frazzled and shit, panicking out of stock, knifing into double inverses with impunity.
I don’t know if yesterday was some sort of selling climax or the beginning of a new down turn. However, being optimistic, I held onto 90% of my longs, while adding to a small FXP position (but is getting bigger), just in case news breaks of the pending destruction of planet Earth.
As you know, I’ve been developing an analytic engine, called The PPT. The biggest problem with ranking stocks is the not-so-subtle abject disrespect the market has for good fundamentals.
Meaning: with the exception to a handful of names, all stocks are trading in a convoy, making fundamental analysis almost useless.
Naturally, there are some striking factors that make stocks too attractive to ignore, such as net cash and high dividend yields. But, for the most part, today’s stock market is dumbed down to the point where I feel like I am living in a backward land (Virginia), trading some bullshit exchange (Nasdaq 5,000).
GS caught a downgrade today. UBS is telling investors both MS and GS will suffer big losses, over the next quarter or so. I must say, what happened to all of those asshats who were long GS, north of $200, exclaiming “they are best of breed”?
I warned you before, during the Asian contagion/LTCM crises, GS bit the big one, just like everyone else. No one should expect them to have super man powers and escape this wrath of a meltdown.
As for today’s tape:
The text book says we bounce here. I’ll have you know, “The Fly” does not believe in Santa Claus rallies. However, we’re down in a straight line here. God knows we need at least a one month respite of a calm/upward trading market. But then again, so does my imaginary friend; and he never grants me wishes of “instant death” upon my enemies or large, grass fed, rib eyes, upon a snap of my finger. Believe me, I try.
Top picks: GE, FXP, KBR, FAZ
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