Saturday, September 6, 2008

DO NOT SHORT FINANCIALS!!!











That trade is over for now. Short financials has been a blessing for many traders this year, me included but this trade is over. The low hanging fruits have already been picked. The charts are speaking to me now. Every piece of bad news has already been factored into this group and they are ready to move on(UP). That doesn't mean that the overall market has bottomed by any means, just the financials and just for right now. Gotta be objective and start looking to get long NOW!

7 comments:

Blue said...

Bet you anything financials go short tomorrow and FRE and FNM go below $1

Blue said...

Stewie, I don't know what to think of this FRE/FNM thing. Ignore my last comment. My gut says they go under $1, but not until all the speculation has taken place and since there is no naked shorting, who knows what can happen.

I think I'll watch the commodity trade and stay out of this mess.

HPT said...

I have no fucking clue anymore. All I know is that the US economy is getting shittier everyday and the banks are losing shit loads of money. It makes no sense to me to buy anything. This is probably the best time to buy just because I'm the perfect guy to fade. If the market goes lower, like the economy, it will surely be doom and gloom. I would expect the Euro to go up, but everything else I don't make sense of.

fjords said...

Great call.

Fjords

Blue said...

What do I win?

Stewie said...

nice call blue. what a wierd day. it is creepy out there. I made some money shorting MEE at the open but it really feels like this mrkt is gonna give up this gain in the days to come.

Blue said...

I'm not trading anything that doesn't have a clear trend. This is psychotic to take a big position trying to guess the direction of the wind change. What is the smart money doing? At some point they'll rotate, because housing, healthcare, and retail can't be high returns for them.

No home runs in this for me. Would have to be very patient (which I'm not) or very lucky. I knew Sep. was going to be a massive sell off. I'm opposed to shorting beat up sectors more (coal, energy) and got caught shorting tech three weeks too early. That's trading!

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