Sunday, September 14, 2008
THE PARTY IS OVA, baby!
First BSC, then FNM and FRE, now LEH and MER and next GS, MS, LM, C, WB, WM, etc,etc,etc. I wish I wasn't right, but I have warned ya all for MONTHS now. We may bounce at some point monday, I really don't know, I do know believe that we have a LOT of downside and ZERO upside longer term. The Nasdaq has 1000 points of downside. The DOW has 5000 points of downside. If you are long, you are WRONG! Protect yourself, folks. I keep getting emails saying that "I'm down so much, I can't sell now!" Really? If it was me I would take the loss and reset and stop the bleeding. Worst case you can always reenter when the smoke clears, so? Put your cash in treasuries and take it out of the market unless you are going to TRADE. This is a market that is ready to CRACK, whether we bounce Monday or Tuesday or we go down my 1000 tomorrow as I've called. It doesn't matter, we are going down LARGE no matter what, it's better to eat it then compound it. I don't have much else to say. We did tell ya so, we even gave a great class a few days ago on BEAR MARKET trading. I have given now 3 lists of stocks to SHORT, if you heeded and played these lists you would be up HUGE so far. Here is my basic plan early Monday. I would cover some shorts near the open and then set stops on the rest. There will be a lot of talk that this is the "BOTTOM"! It's a joke, but the market may get a bounce nonetheless. BSC bounced the markets, and so did FNM and FRE. I want to maintain some exposure because BSC, FNM and FRE all bounced the market but then we tanked, so they may not be so quick to bounce us Monday. We'll see soon enough. Good luck, make sure you are patient and pick your spots! So much for oil down, the market up, right? Hmmm! RULE! Michael "Waxie" Parness