1) ASIA..Chinese talked about how they may restrict borrowing to curb excess speculation..then the asian markets tanked. 2)durable goods were much worse than expected. 3) news about Cheney almost being assasinated in afghanistan. 4) greenspans comments about a recession from yesterday still lingered. 5)the market was up too much and due foe a correction. 6)finally,and something very important that many have'nt mentioned today was the implosion in the sub prime market..the market is a forward looking mechanism and i believe it is concerned that there will be a spillover into the rest of the economy.contrary to what the cheerleaders on cnbc say,i don't believe the downturn inthe housing market is over...
Thanks Einstein. Did you just switch on the news, or did you come up with these insights all by yourself?
Yeah, but typical of that kind of mentality. He manages to spew forth 38 posts in 2 1/2 years, obviously a huge contributor to this forum. I hope some of his other posts are less vile than that one.
The first point is not entirely accurate; the chinese announced they were forming a task force to enforce the already existing restrictions on loans for investment purposes.
Bob Precter of Elliot Wave Theorist has been predicting it for about 12 years now. Maybe He finally got it right.
Yeah so what's your suggestion? Sit in cash? Market dropped cause it's the only way to flush out the weak hands. Reality is that no smart money wants to sit in cash. And cash is exploding. Cash loses at least 10% annually. It's gotta go somewhere. It's not even close to a 10% drop. Emerging markets have downside moves of 10%, and they are still kicking ass. The US equity market never really stopped being bearish since 2000 burst. It's just that 99% of people use the wrong denomination. This is a buying opportunity, but not of all equities.
EXACTLY!!!!!!!!!!!!!!!!! And the feds currently have him in prison right now 7 yrs running awaiting trial!!!!!!!!!!!!!!!!!
The only way to play the markets for the next year is long gamma, long overdue. Trade mini S&P's vs long big S & P options...still cheap.