I am going all in. I have already opened several credit cards and got maximum cash out of them. that is about 25k. I also met a loan shark who was willing to levereage that cash 5:1 with a 45%interest rate. I put about 140k into an account and will lever it 4:1 from my broker. tomorrow I will open long positions and go all out. all equities should be worth over 540k tomorrow. If I am right, I will become rich, if I am wrong, I will perish. I strongly believe the market is still good. 1. Broad based indeces are down only 11% from highs. That does not qualify the market to be bearish. We move 3-4% on some days. 2. The fed is repeatedly doing everything it can to prevent disaster. Money is available cheap now and that is what companies want. They would jump on cheap cash to use for expansion. 3. I agree the market sentiment is bad right now considering BSC and all. But one company is nothing compared to the grand scheme of things. 4. Jobless claims should fall with more companies willing to do some more hiring. 5. Historically, stimulus packages have helped the economy, so will the checks we recieve in May. 6. People will also be borrowing money since it is cheap and start pumping the equity market. Foreigners will do that too. 7. Companies have stabilized in the past 40-50days since those Jan lows. It just refuses to fall. 8. Stocks never shoot up in a straight line. There is always some sort of a correction. This is nothing but a mere corrections. thats exactly what it is, 10-15% correction. 9. Oil prices will come crashing down. I expect somewhere in the range of 60-70. How soon? I dont know. But within a few months perhaps. The current rising prices are not sustianable by the middle and lower middle class(majority of this country). The prices right now are too inflated and geopolitical conditions with Ven. shoudl get better. But if Obama or Hillary wins and pull out of Iraq, there could be some problem as America is in Iraq solely for the oil. 10. Because congoboy said so. If I am wrong, I will go back to mbotukinshasa or wtv the fuck it is. If I am right, well, if I am some people I know will be very impressed with my abilities and would want me to manage their money.
Dude didn't you see Cramer tonight he said that we have reached the bottom and it's all up from here. The trouble is everytime he states something will go up it actually goes down!
well congoboy, i don't if you are right or wrong. But you did make a couple of good points. I thought you were some freeloader looking for a get rich quick type thing. good for you if you are right, back to selling straw hats if you are not. I do like your bold mentality to come and say what you know even though you probably know you will get bashed the fuck out on this thread. Not so sure about all that leverage. i hope ur kidding. But if you dont have anything to lose, what the hell right.
We are in a trading range 1255 to 1400. Until the market makes a clean breakout, say to 1440 or above, or 1220 and below, that will remain the case. Trade it as a trading range until it breaks out, then trade it as a bull or bear (IMO a bull breakout is more likely later this year) once the market gives the signal by breaking to new ground. If you trade it like a bull market, you will get killed if we go to say 1400-1425 and then pull back to the lows of the range. Whereas if you play it like a range, you will exit at 1400 (or at least hedge with puts), and only get aggressive again once it hits 1430-50. Another sign that a new bull is starting is that the market will hit highs for the year, but sentiment will be sceptical of the rally.
I have heard today by many, many, many, talking heads and fools that the bottom is in......makes me laugh.....amazing how you get one 400+ rally and everyone thinks everything is all better, didnt they say the same thing last week when the dow did the same exact thing. The DOW is up 700+ in only 2 trading days, the bulls of course are always greedy for more and expect the dow to probably add another 2000 points over the next month. I cant stop laughing, the only catalyst for this market is a federal reserve that will throw money at anything. This was a fed induced rally, too bad the market cant do this on its own....
This is a joke right? We are in a bear market. We may go up for a few days but we're just at the tip of the iceberg here of a very long and severe recession. Please dont kill yourself when your bet fails. Paul