The stock market is being used as a source of funds right now which is not good....the largest players in the equity market have major major capital issues right now....AIG needs $70 Billion to survive, that is a HUGE number (Goldmans entire market cap is $53B...they basically need a Goldman and a half) and they are just one major player.....this is the point where stocks are no longer viewed as representing ownership in fundamentally sound companies but rather as a mere source of funds...a way to raise cash....you sell stock you get cash, thats what they need cash.....this is when it gets scary and stock markets crash, its when people become fearful of owning stocks as an asset class. after todays action you can tell real fear is developing in the market and people are really JUST starting to get a bit nervous about owning stocks....you're starting to see stocks that were worth $60-70/share go to zero....and these arent just any stocks, they were the biggest balls in the market....people are starting to think about what they own and what its really worth if panic sets in....i mean is it that far fetched to see AAPL selling in the 90s....the big boys could sell that stock off another 40 points down to $100 and funds would still be getting out with a profit...thats how you have to think right now....think about how much fund ownership your stocks have and know that those funds are having major problems and need cash.
Not my WORDS but thought I would post it here because it is true
MARKETJEDI
Monday, September 15, 2008
S&P levels to watch
1169 and 1143 then below that 1130 levels to watch as support on the S&P. We are getting cracked here overnight in the futures obviously from the Asian market re opening.
TESTIMONIAL !!!!!!!!!!!!
Just got an email from a reader of my blog. Here is a copy.
Hey Jedi,
I stumbled upon your blog while making a blog for myself. I followed your blog for about 3 months before I traded off your calls and guidance. I have one word for you 'ACCURATE'. I have never seen such guided play hit with such accuracy. I think I have only seen one loser since following your blog for the last 5 months. Your calls on SKF were just amazing and the call for technology weakness was just too scary on the point.
I would pay for this information and would love to talk to you about the markets when you have time.
T.J.D.
Loyal follower
Hey Jedi,
I stumbled upon your blog while making a blog for myself. I followed your blog for about 3 months before I traded off your calls and guidance. I have one word for you 'ACCURATE'. I have never seen such guided play hit with such accuracy. I think I have only seen one loser since following your blog for the last 5 months. Your calls on SKF were just amazing and the call for technology weakness was just too scary on the point.
I would pay for this information and would love to talk to you about the markets when you have time.
T.J.D.
Loyal follower
Crack me up
I was in total lauhghter this evening listening to Fast Money. I mean do these guys make any money? They said time and time again that the financials have bottomed and one said he got his head handed to him today buying Goldman. Told you guys before when they were talking about $150 is a floor for Goldman, I said no way! GS will see $125. They have earnings report in the morning s we will see what they have to report on their books.
What is scary here is that I was reading today how many cross relationship some of these firms have. Citibank has a huge interest in AIG through preferred and if that one FAILS, we will see another domino effect in the financials. Let me be straight as possible we are nowhere at a bottom. I am very sure we will bounce tomorrow sometime or wednesday but it will be another chance to short.
Anyone notice Citibank and Wachovia today. Citibank had 125k puts bought at the $15 level expiring this week, that's just bearish. I have never seen such put action on Citibank before. Wachovia down 25% today looks like it might hit my $7 level very very soon, just death all over.
About two weeks ago JIM CRAMER announced his best bank bets :) WHAT A JOKE. Maybe he thought of saying best banks to fail :) man oh man ! what a call. Death all over the financials. SKF was up like $20 today. I suck I only got $9 profit from it but oh well.
I am very light here as I think we will get a rubber band bounce soon and I dont want to be heavily short and I would advise all to do the same.
We rocking and rolling if you follow the calls here for sure.
What is scary here is that I was reading today how many cross relationship some of these firms have. Citibank has a huge interest in AIG through preferred and if that one FAILS, we will see another domino effect in the financials. Let me be straight as possible we are nowhere at a bottom. I am very sure we will bounce tomorrow sometime or wednesday but it will be another chance to short.
Anyone notice Citibank and Wachovia today. Citibank had 125k puts bought at the $15 level expiring this week, that's just bearish. I have never seen such put action on Citibank before. Wachovia down 25% today looks like it might hit my $7 level very very soon, just death all over.
About two weeks ago JIM CRAMER announced his best bank bets :) WHAT A JOKE. Maybe he thought of saying best banks to fail :) man oh man ! what a call. Death all over the financials. SKF was up like $20 today. I suck I only got $9 profit from it but oh well.
I am very light here as I think we will get a rubber band bounce soon and I dont want to be heavily short and I would advise all to do the same.
We rocking and rolling if you follow the calls here for sure.
Goldman
Goldman Sachs getting killed here - I guess nobody wants to hold in to there earnings tomorrow
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