Gotta love ZERO RISK in the SP500 = $$$

Discussion in 'Trading' started by makloda, Jan 27, 2007.

  1. Buy this dip.
    #1821     Mar 1, 2007
  2. S2007S


    you think so. This morning was one hell of a dip.....I think the markets could easily break down after 3pm...Buying these dips is risky, you might catch some upside but to think its headed back to 12800+ might be tough.
    #1822     Mar 1, 2007
  3. No. I was being sarcastic.

    I think sentiment is very rough right now, and there is tremendous worry globally.

    They even let Hillary Clinton on CNBC.

    The whole psychology has shifted.
    #1823     Mar 1, 2007
  4. I am not surprised, with billions of dollars in market capitalization vaporized within 72 hours. This will take weeks to fully unravel. This doesn't mean the market will collapse and Dow goes to 7000. It could go anywhere. What I mean is the volatility won't go away until the majority of the capital that was hurt by this move calmed down and has made (or was forced) to make its moves.
    #1824     Mar 1, 2007
  5. S2007S


    agree, I think i heard about 600 billion worth of market cap was lost on Tuesday alone.

    This volatility is just great as well....
    #1825     Mar 1, 2007
  6. Many hedge funds are going to feel a great deal of pain especially those involved in the "carry trade" with Japanese yen against other currencies. There will be a great deal of squeezing throughout the month of March as Japanese banks square off their books, and this will be felt in stock markets as well. people have been playing the carry trade for more than 5 years I think and it is pay back time I think
    #1826     Mar 1, 2007
  7. S2007S


    Do you know how many hedge funds have popped up during the last year, im sure some are really worried about whats next for this market.
    #1827     Mar 1, 2007
  8. And now U.S. politicians are getting pressure from U.S. manufacturers to weigh in on currency manipulation again - Japan, Korea and China keeping their currency deflated to buoy their exports.

    Even Hank Paulson was jawboning the issue this morning.

    Just wait till their investors get their month end statements.

    Massive redemptions?
    #1828     Mar 1, 2007
  9. S2007S


    were going green on the DOW....
    #1829     Mar 1, 2007
  10. Maybe temporarily. It won't last, though.

    What a wicked flow to this volatility.

    I wouldn't be surprised if we closed down 200 points on the DJIA. Seriously.
    #1830     Mar 1, 2007