Tuesday, January 22, 2008

No Panic Yet

Down 2-3% at 10:00. Given the Chinese fire drill for 2 days, that's holding up OK. As I expected, the panic that would have happened yesterday had the markets been open didn't occur. Or occurred on a much smaller scale. I am buying up some more.

We're off 20% give or take off 2007 highs. That is a nice chunk of change off already. We are in an election year with 3 Senators running. Benny B is in cut rates to 0% mode. Jorge W. is getting ready to spend money like nobody's business. The cards are being stacked for at least a short term run.

Oh we'll have inflation run amok, but that is beside the point, a point that obviously nobody gives a shit about right now.

2 comments:

Anonymous said...

I would like to subscribe to your newsletter. Calling the market behavior the way you did today was damn impressive!

So, explain to someone who's completely outside the field of finance, and trying to self-educate, how did you know?

Ed said...

**blushing**

I'm outside the field of finance as well. I majored in it but 98% of what I learned was bullshit equations using calculus which are about as useful in real life as Larry Kudlow's advice. And aside from a 9 month stint working for a mutual fund right after college, I've had nothing to do with finance officially.

This sucker could easily fall 4% next hour for all I know. It's volatile as hell. There will be lots of people selling into the rally.

I'm still sticking to my 1325ish S&P500 bottom.

As for my magic 8 ball...simple really. When everyone says sell, I buy. When everyone says buy I sell.