CRISIS

This whole FNM and FRE deal is amazing. What is the government thinking??? I thought America was a free capital market system and we don’t allow the government to affect the wheel of capitalism. This is so contrary to what american politicians talk. They don’t walk their talk, let the banks fail!! let FNM and FRE fail. It has been over 5 year now that accountants have been questioning the value of the derivatives on FNM books, it is not a overnight thing that happened it was in the making a long time but as usual no one does nothing till it is too late.
We might get a bounce here because of the news but we will see that same thing that happened in March with the Bear Sterns bailout and we ended bouncing and selling off again. I think the same will happen here. I think 10500 on the DOW and 1200 on the S&P are magnets right now.
Folks we are just in the beginning of bear market and I think we will ultimately be around 7500 on the DOW and Nasdaq will tag 1250 before the Bear market is over.
Only fools will be here trying to buy and yes call me crazy again but within the next 24 months the banking system will be in alot worst condition than we are now and we will virtually be in a no mans land in the financials. What I think is we will have more IndyMac scenarios and more and more people will cause run on banks and totally crush the banking system. I hope I am wrong but Americans don’t like to face reality and that's the ultimate problem.
I still think Citibank sees below $10 and this FNM bounce is just that a bounce and we will ultimately be sub $5 on that crap soon enough.
This week we have GOOG and IBM earnings so watch to see how the overvalued TECH land does.


Have a great trading week.

MARKETJEDI

Okie Dokie

We just had our first bankruptcy of a slew which will happen in the near future in INdyMac. This is going to be one tough road for the bank and I STILL think a regional bank will fail. I was ask last week who I think will fail and my list are as follows:
No.1 candidate is WM (Washington Mutual)
No.2 SOV (Sovereign Bank)
No.3 DSL (Downey Financial)
No.4 NCC (National City)
No.5 STI (Suntrust)

10000's

Do we see 10000's today??????
Only a few points away

FNM - - SUB $10

FNM is sub $10 pre market.


DANG

WHO RULES!!!

MARKETJEDI

FNM - Update

FNM and Citibank my two favorite shorts might be the worst two performing stock this year when all is said and done.

Cramer said to buy now he is ranting FNM is insolvent.

THE ONLY TRUTH IS HERE.

AWESOME CALLS ONLY WINNERS HERE !!!!!!!!!!!!!!!!!!!!!!!!!!!!!


MARKETJEDI

AAPL

AAPL new I-phone comes out today. Look for a sell the news here on AAPL.
I would not be surprised to see AAPL much lower today into next week.
Target $10 lower $165 level

CRISIS ALL OVER

Folks not only are we having a credit crisis but a energy crisis. I suspect we are just in the beginning of both and we have much more to go. Home loans are at a complete halt, while overnight OIL went over $145. What amazes me about OIL is that @$145 we are war, hurricane and supply obstructive free. WHAT would really happen if one of these happen?? We might be up over $15 in a hurry. I know I was laughed at last year when I said Oil to $100, then I know many believed I was crazy when I said a couple weeks ago Oil to $170 but listen it will come very soon.
Futures are down although we are 3 hours from the open and I think the move on Oil is having the futures sink lower. Lets see how we react to the open. Don't be surprised if OIL touchs $147 today !!!!!!!!!!!!!