There is a good chance we bounce in or into earnings. How far we go is the question as the new as been pretty terrible. S&P is now sitting almost @1250 which was where it was 2 yrs ago. I think when we bounce we will bounce very fast but will face selling again. For those who missed this nice downdraft we should flag or bounce and set up again.
My long term bear target on the S&P is 800 and 320 for the Russell at those levels the DOW will be below 9200. Hopefully we bounce soon but I am not one to catch falling knives. We goign to crash and burn soon and something tells me it will be in the August to October time frame before the elections.
Wednesday, July 2, 2008
One reason the rich remain rich
One reason the rich remain rich especially in the investment world is because they have a pipeline of capital available to them. Some of the richest hedge funds and private equity don't invest themselves but merely have access to capital and distribute it to people who can make money.
For example let say a large hedge fund or private equity has 5 billion they invest in 50 different ventures or managers hoping for a 10/100 bagger to cover the losses of the 30% that the don't make money on. This is how the big guys do it.
Lets look at Kirk Kerkorian who bought almost 10% of GM @ $30 average. He is one of the brightest investors in the investment world. Anyways how is his GM investment today
?????
How is Bank of America's Countrywide investment doing which they thought was an excellent investment @ $16 less than a year ago????
I can go on and on. These guy have nothing over us more than money. They throw money at 1000 stuff hoping 1 or 2 are blockbusters to simply wipe out the losses of the rest and that's there game. Non of them I tell you this will have a record of calling the market as I do for this blog or many traders I know. CAPITAL RULES, that's the story I am saying here, not smarts when it comes to real high end investing. Most of these guys dont even read a newspaper that's how pathetic they are but hey that's the name of the game.
Since we the regular investor don't have the access to huge capital we have to use out smarts and instincts and play as such.
HAVE A HAPPY JULY 4TH
MARKETJEDI
For example let say a large hedge fund or private equity has 5 billion they invest in 50 different ventures or managers hoping for a 10/100 bagger to cover the losses of the 30% that the don't make money on. This is how the big guys do it.
Lets look at Kirk Kerkorian who bought almost 10% of GM @ $30 average. He is one of the brightest investors in the investment world. Anyways how is his GM investment today
?????
How is Bank of America's Countrywide investment doing which they thought was an excellent investment @ $16 less than a year ago????
I can go on and on. These guy have nothing over us more than money. They throw money at 1000 stuff hoping 1 or 2 are blockbusters to simply wipe out the losses of the rest and that's there game. Non of them I tell you this will have a record of calling the market as I do for this blog or many traders I know. CAPITAL RULES, that's the story I am saying here, not smarts when it comes to real high end investing. Most of these guys dont even read a newspaper that's how pathetic they are but hey that's the name of the game.
Since we the regular investor don't have the access to huge capital we have to use out smarts and instincts and play as such.
HAVE A HAPPY JULY 4TH
MARKETJEDI
Job Numbers
Sitting down here tonight and wondering what the heck happened to the bulls today. I guess the GM news of possible bankruptcy and the possible poor job numbers are putting the bulls on a rest.
With all of this I see some fantastic opportunities setting up. I just want to get some volume set up to get us on board.
Not worry earnings season starts next week and we going to get some HUGE movers.
With all of this I see some fantastic opportunities setting up. I just want to get some volume set up to get us on board.
Not worry earnings season starts next week and we going to get some HUGE movers.
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