Monday, July 07, 2008


How bad are these financials? Jeez, louise! Well, don't say I didn't warn ya! Though, I must admit that I did think we'd at least get a bounce in them to start the new quarter. And, they did try, but they are just DEATH here. I still think they have to bounce, I mean they can't all go to zero,,,can they? Hehe!

FNM, FRE my two favorite financial shorts just CRUSHED! The people who played our short list are ROCKING to say the least. I mean ROCKING ROCKING ROCKING! As I write this S & P futures are down over 8 points again! This market is really in trouble folks. I think a gap down TODAY should get us some VERY nice bounce candidates. We tried to bounce late day Monday and I am thinking we get a dead cat short covering rally here today that could be nice. We'll see. A real nice capitulation would be super nice to wash us out and let us at least get some breathing room. You know what's really scary? I post on other sites my blog thread at times and I got booted from one the other day. Why? Because they said I was too NEGATIVE. Oy vey! That's why, my good friends, that investors are FOOLS. I'm sorry, I hate to grossly generalize, but why in the world wouldn't you want to hear the negative, even if you disagreed? It makes no sense, other than sticking your head in the sand and praying. And, while I believe in the spiritual power of prayer in many instances, I find it hard to imagine that anyone's idea of G-D would spend a lot of energy attending to prayer for stocks to go up! Ya know? Seems there are a few other more important things in the world to deal with then whether or not Citibank's stock has reached a bottom! It's really a shame, the US stock market is going to CRASH. I'm sorry, folks. I call it as I see it. It's going to be so bad that people are going to feel as though its the end of the world financially. As always, I preface it by saying I hope I am wrong, I truly do, but so far those of you who have been here listening to me/us at prognosticate know that we/I have been DEAD ON, and that's no exageration or tooting of my own horn. I would rather be wrong and have people say I suck, its better for everyone if the market rallies, but this market is SHOT. Oh, we will bounce HEAVY shortly, perhaps very shortly, but the overall trend of this market is decidedly LOWER and MUCH MUCH lower in the end. Now, you can choose to heed that warning, as I have said again and again, or you can stick your head in the sand and say "he's just so negative! Why doesn't he do some Yoga!" Well, I do do Yoga, and I am VERY positive about most things in life, life is beautiful and wonderful and glorious. It's the stock market that sucks, dudes and dudesses, it's the stock market that sucks. Let's see what shakes here. If you are short, make sure your stops are set so when we do get a squeeze you lock in the gains and can reverse. Remember that Bear market bounces can be AWESOME to trade. Yes, we are and have been in a Bear Market for a while now. ANd, yes, we are and have been in a RECESSION for a long while now and will remain in one for at least 2 to 4 years, potentially 5 to 7 years. Sorry, I know, I am Mr.Negative. Perrhaps when we get a FED that actually knows what it's doing we can turn things around faster. Until then it's scary. And, for those that think that Oil prices are the root of all evil. As I've been saying and said on National TV, oil has virtually NOTHING to do with the stock market. Oil was down HUGE today and the market couldn't get out of it's own way. Amateurs point to oil as a cure all or damage all end all. It's simply not the case and hasn't been for YEARS. Reality is reality, everything else is just hope and in the stock market HOPE is a four letter word. Keep the faith, and trade 'em, don't marry 'em! WAXIE

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