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goldminingXpert (29.34)

Bears Win Again: That's Why You Stay Short

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October 24, 2008 – Comments (6)

This market wants to drop. After a fun open, bulls tried to save the day with brazen buying all afternoon. However, faced with the possibility of crushing losses holding through this catastrophic weekend, the bulls turned chicken and dumped 200 dow points in the closing 10 minutes. This is a bear market, the only people who buy these rallies are day traders and suckers (often times one and the same.) There are no values when stocks are consistently getting cheaper. The only two ways to play this market: cash and go short and hold short. I'm taking the later approach.

6 Comments – Post Your Own

#1) On October 24, 2008 at 4:52 PM, barich1 (69.35) wrote:

You have been real good with timing lately.  Let me know when you think its time to sell the ultrashorts again.

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#2) On October 24, 2008 at 5:34 PM, socialconscious wrote:

Yes yes yes ! You can make money in the market. Sometimes its shorting in a bear market.

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#3) On October 24, 2008 at 6:13 PM, Ph1sh55 (28.25) wrote:

Shorts have been kind to mycaps rating...

I've been on board with deflation so things have worked out well, thanks to numerous perspectives being offered, one of them being the writer of this blog. :)

Gold is the toughest one to predict though- you can see resistance at 700.  We're in deflation but fairly soon we'll see some ridiculous stimulus package announced which will launch gold back up.  Otherwise I think it could drop through 700, maybe even to 500.  Oil to 50 is my low target.

I'm finding it harder and harder to accept how rosy some are trying to make the situation seem.  ie the "now's the time to stock up!" crowd.

Anyway thanks for the continued postings.

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#4) On October 24, 2008 at 11:16 PM, jesusfreakinco (28.77) wrote:

GX,

Interested in your thoughts on this article:

http://tinyurl.com/6juujd

predicting the collapse of the USD in the summer of 09.

Thanks,

JFinCO

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#5) On October 26, 2008 at 2:03 AM, goldminingXpert (29.34) wrote:

Interesting article. Problem is that the rest of the world is following our example. That's why we have a global crisis in the first place. We will be the last (excluding small smart nations like Canada/Swiss) domino to fall. Thus, if dollar collapses next summer, it means everything else (euro, pound, most of the asian currencies, and all of South America/Africa went down first.) I'm not ready to predict a global economic collapse the likes of which hasn't been seen since the dark ages. As long as America has the nukes and the strongest army, it will be viewed as a relatively safe haven. Our debt/GDP ratio for instance is quite low vs. most of Europe. Our economy is in fabulous shape versus most of the rest of world. If you think we're going down, you better not be long any currency other than maybe swiss franc and loonie. Bars of gold won't do you much good either, cause in this sort of scenario, there won't be anything to buy or barter for.

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#6) On October 27, 2008 at 1:06 PM, jesusfreakinco (28.77) wrote:

GX,

Thanks for your thoughts.  Scary times ahead indeed.

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