Posted on 01/22/2008 5:03:46 AM PST by al baby
He’s right on that. That said, he’s visibly panicking at the moment on CNBC. He might give us another youtube classic by the end of the day.
Another clown on CNBC just said there’s no way we can be in a recession, or be heading toward one, because the Fed isn’t “tight” with interest rates. OMG.
“They” are definitely buying the DJII here for show. S&P and Nasdaq are all the way back to the very lowest lows of the day.
CNBC “we’re off the lows” count: three times this half-hour. Oh poor Erin, when QQQQ drops a percent in ten minutes, chanting “we’re off the lows” just reveals you to be a whore of the financial media.
One last thing Erin, please don’t ask anybody what they’d be buying here.
No. Another couple of funds in England went out of business or stopped allowing withdrawals because they're about to, BAC results are in the crapper, Ambac was downgraded from AAA, stuff in Japan ran up on their Friday in anticipation of GWB's Friday-noon speech being well-received here and it wasn't, etc.
Those are just the ones that come to mind immediately.
BOA just lowered their rates to 6.5 from 7 something..
DJII down 440 after 4 minutes. See what happens after the pre-programmed trades clear out.
Cavuto saying it’s not a real bear market til the market goes down 700-ish...
Keep breathing..
lol thats almost exactly what he told me and go have a stiff drink after work today.
The total movement on the S&P and NASDAQ percentage wise today and since 01/02/08 is what I’m watching. The DOW is just a snapshot of ‘real time’ sentiment.
Nah, nobody is going to notice if there are another 300-400 billion in FRNs made out of thin air and electronically added to the banks' loanable reserves. Everybody will continue to price things at the previous rate, including foreign currencies, commodities, food, non-essential stuff like that. </sarc>
Which funds in England broke apart? Just curious....want to know who the manager was and the type of funds. I presume insurers of bond funds (sub-prime mortgages)?? Maybe Chavez had a wad in them?
Now it’s officially a panic, they yanked Kudlow out of bed and he doesn’t disappoint: “No I don’t think this indicates panic on the Fed’s part, they simply reacted to, ah, the plunge in the markets...” THAT’S THE DEFINITION OF PANIC!
Then he goes on to call for more rate cuts, rate cuts by the other Central Banks, rate cuts by your paperboy, etc.
I smell M O N E Y! This sell off is good for us long term...
Yeah, and with recent run-ups in the markets versus real population growth, inflation adjustments, the real growth in the GDP, growth of private and public debt, all normalized, the actual value wasn’t there in many of the bonds and derivatives, stocks, etc.....especially with the artificially induced housing / real estate / sub-prime mortgage boom. / bust.
article on British/Scottish fund problems
http://globaleconomicanalysis.blogspot.com/2008/01/uk-property-funds-shut-down-by-panic.html
“You could also trade stock futures and stock index futures if you were up for it, but it’s generally a tool best left for professionals. and the entry fee is a bit high (as a it should be), because it’s a much riskier market.”
______________________________________________________________
As someone who has traded futures contracts for more than twenty years, I must respectfully disagree with two of your statements, to wit: “the entry fee is a bit high” and “it’s a much riskier market.”
I am a trader, not an investor. Thirty minutes is long term for me. I take advantage of short term market behavior. In my view, unless you are hedging a portfolio, you are a fool if you hold open positions in these contracts after the close of “regular hours” trading.
That makes me a “day trader.” In my view, day trading individual stocks is a fool’s game as well. But, if you’re going to do it, you need at least $25,000 in your brokerage account, by government edict. You can trade electronic equity index futures with a small fraction of that.
As to market risk, that’s why stop loss orders exist. In a liquid market, (the S&P 500 emini trades 100’s of thousands if not millions of contracts during regular trading hours, practically every day) with proper capital management, reward/risk ratios almost always exceed 1 and frequently are better than 2 - 3. I have two completed trades today, so far. The first one was good for about a $170 profit, per contract. The second one for more that $900, both with real risks of a little more than $100. Both were longs, btw, and exited before 09:00 Chicago time.
There are a lot of misconceptions about the futures markets and it is possible to lose a lot of money in them. They are not for everyone, but with proper education and discipline, the electronic index futures markets are the most egalitarian market available for the “outsider,” if he/she is willing to devote a full time effort to them.
well, of course, this is an internet message board, and naturally someone's got to "disagree." At least you said "respectfully."
Did you see the questions I was being asked? Does that person seem ready to trade futures?
entry fee high? it's called money management. do you propose that because the margin on a euro contract is 2800 or whatever it is, that that is sufficient capital to trade with? If you're inclined to answer in the affirmative, take my advise, and don't, or I will have no choice but to embarass you.
That's it. That's as far as I go. I don't care how much of a trader you think you are. Real traders know that futures is no place for the feint of heart.
Unless they're really special, like you.
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