The VIX is a measure of volatility in the market and today it hit a yearly high. Usually a spike in the VIX is an indication of maximum fear and climax in a move to the downside. Based on this I wouldn't be surprised if we do bounce in here somewhere.
Friday is Triple witching of all options and futures. 9 out of 10 times if we have a bad down week triple witching the week after is usually horrible, so while I think we will bounce here I dont know how far and how long.
Next week might be the telling story of a real flush out. I will be watching
Wednesday, September 17, 2008
Okie Dokie
Fear is definitely in the market here but I think we might bounce. The bounce wont be heavy as I think the money to be made in this market for the next few years will definitely be on the short side PERIOD.
The main problem is is the greed and use of leverage in the market. One of the main reason we are in this bind is that leverage only works well when you are right! All the Investment Banks, hedge funds and traders were leveraged up to the wazoo that now that the market has turned against them they are losing money that is not even there!!!
People like Cramer has been telling people to buy GS and MS for months and that July lows were the absolute lows for the financials. Well Cramer investors how are you doing? How is his four Horsemen of tech, I will tell you, they are crushed. I think APPLE will be a $25 stock and GOOGLE is at its best a $150 stock.
Wachovia is up 10% after hours on a rumor that they will merge with MS. Oh ok, to me WB is going below $5 and so is Citibank. Yep go ahead and buy MS or WB on the news, just dont let me know :)
Tomorrow should be very very interesting. I think if gap up it is a given short but if they flush us early I would look for a push down to 10,500 and then some buying should come in.
Listen most of you might think I might be crazy but the DOW is going to 7500 in 24 months, mark it down. No saving up period and the Nasdaq will head to sub 1000. It is not going to be pretty but hey I am ugly and I am married to a beautiful woman so maybe the market is thinking the same, it wants a beautiful wife!!
The main problem is is the greed and use of leverage in the market. One of the main reason we are in this bind is that leverage only works well when you are right! All the Investment Banks, hedge funds and traders were leveraged up to the wazoo that now that the market has turned against them they are losing money that is not even there!!!
People like Cramer has been telling people to buy GS and MS for months and that July lows were the absolute lows for the financials. Well Cramer investors how are you doing? How is his four Horsemen of tech, I will tell you, they are crushed. I think APPLE will be a $25 stock and GOOGLE is at its best a $150 stock.
Wachovia is up 10% after hours on a rumor that they will merge with MS. Oh ok, to me WB is going below $5 and so is Citibank. Yep go ahead and buy MS or WB on the news, just dont let me know :)
Tomorrow should be very very interesting. I think if gap up it is a given short but if they flush us early I would look for a push down to 10,500 and then some buying should come in.
Listen most of you might think I might be crazy but the DOW is going to 7500 in 24 months, mark it down. No saving up period and the Nasdaq will head to sub 1000. It is not going to be pretty but hey I am ugly and I am married to a beautiful woman so maybe the market is thinking the same, it wants a beautiful wife!!
Selling
Market just in total sell mode. Nothing is safe here- We are goign to close at the lows of the day which is not good. Technicals are horrible I would not be terribly short here as this is usual a sign of a reflex rally coming
Goldman
GS just traded below $100. I guess I have to update my prediction, that one came too quick :)
Reversal is possible
Reversal is possible here from my indications. I am not jumping on it yet but if it does turn around I will be jumping on
Thought
If you are short here I would advice to take some profits as I think the downside is getting stretched. Who knows I didn't take much advantage of the downside today because I think we getting rubberbanded here and dont want to be short when people start to cover.
STAY NIMBLE
STAY NIMBLE
Wachovia
Seem like Wachovia looking for my ultimate target of $5 sooner than later. The stock is battered here down 24%. No saving that one for sure. Wachovia will never see $20 again without a buyout.
Weeeeeeeeeeeeeeeeeeeeeeee
Down we go. They are selling everything here. I am hearing people are taking there money out of Mutual Funds so obviously we have some forced selling, but hey we still have more to go
More Prediction
Update on GS. Predicted early this year GS would see $125, since it is now below that level I have a new target.
$100.
YEP it will crack $100
MARKETJEDI !!!
$100.
YEP it will crack $100
MARKETJEDI !!!
Prediction
Citibank and Wachovia will see new lows in the next 6 weeks.
Citibank I think can goto $10 and Wachovia down to $7.50.
STAY TUNED FOR MORE
Citibank I think can goto $10 and Wachovia down to $7.50.
STAY TUNED FOR MORE
No Bounce
No real bounce off the gap down. This is not pretty with the huge bail out of AIG. This is just crazy that the FED is run by a bunch of moronS and self interest bankers. The US is no doubt in a recession and possibly can go into a depression. Is this the last of Wall Street??? I will be writing a long note this weekend on where I think Wall Street will be in a few years. Stay Tuned!!!!!!!
MARKETJEDI
MARKETJEDI
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