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Uhmmm, this is beginning to look like a "plunge"

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June 22, 2009 – Comments (12)

Stocks Pull Back as Global Economic Worries Rise- AP

Lowered expectations for the global economy are giving investors more to be wary about. Stocks are retreating after the World Bank predicted the global economy will shrink 2.9 percent in 2009.

World Bank cuts 2009 global growth forecast-

12 Comments – Post Your Own

#1) On June 22, 2009 at 10:18 AM, kfisherprotege (30.28) wrote:

Also, While sipping my morning coffee, I stared at the FTSE and DAX charts.  They had sharp downward trajectories today.  That, combined with the World Bank forecast caused me to short some leveraged bull ETFs (BGU, SSO, QLD, TNA).  I hope to cover those shorts sometime later today for a nice profit.

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#2) On June 22, 2009 at 10:22 AM, dwot (43.46) wrote:

Well, if anyone looked with any kind of depth there was no reason for the recent rally. 

Interesting article I recently read, with such an out of balance in the financial sector, as in way, way, way over employed, well for those people their jobs are dependent on being bullish so their is that bias to some of the bullish nature we have seen.

This will be a disaster for investors that do not take their profits.

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#3) On June 22, 2009 at 10:38 AM, portefeuille (99.61) wrote:

That, combined with the World Bank forecast ...

It is usually not such a good idea to "combine" cause ("World Bank forecast") and effect ("They had sharp downward trajectories today.") ...

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#4) On June 22, 2009 at 10:41 AM, portefeuille (99.61) wrote:

(and yes I know that that is not the only "cause" ...)

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#5) On June 22, 2009 at 10:53 AM, checklist34 (99.69) wrote:

the bearish outlook seems to looka t things like "things are bad, stocks should go down every day", and in holding that view and obsessing over the "rally" seem to not get that we're basically just in the same trough we've been in since last October.  

Except for one V shaped dip from and rally to it, we're now 9 months into a 850ish to 950ish trough on the S&P, and I maintain that a retest is really not likely.

shorting any levered ETF has an intrsinic margin of safety built into it.  If and thats a pretty big if, you can get teh shares its better to short a levered bear ETF than it is to buy a levered bull ETF if you think something is going up, and vice versa if you think something is going down

 

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#6) On June 22, 2009 at 10:58 AM, kfisherprotege (30.28) wrote:

I'm not so sure if the World Bank forecast WAS the cause for the intraday performance of FTSE and DAX (and subsequently the US markets so far).  I'm just highlighting the fact that the rally has run out of steam and investors got easily 'spooked' by this report in an otherwise news vacuum day.

Saw the news, reacted, let's hope it turns out profitable.

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#7) On June 22, 2009 at 12:15 PM, ralphmachio (24.77) wrote:

So, now the only question is, How high will FAZ fly?  So glad I didn't trade it for DXO last friday... I know, I know, I'm not an investor, I'm a gambler... aren't we all?  Oh, that's right, dividends are guaranteed...

Still, I wonder if there will be a point where it is very smart to switch at least half of it over to DXO.  Things are so touchy all over the world!  

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#8) On June 22, 2009 at 12:19 PM, mikecart1 (98.65) wrote:

I love the plunge.  Allows me to buy more shares at lower prices just like I did in March.  So far 2009 has been great for my wallet! :D

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#9) On June 22, 2009 at 6:00 PM, awallejr (85.56) wrote:

It has alot to do with oil going down now I submit.  Oil made it's run for now and speculation time is over.  It started a little soner than I thought it would (Before July 4). Might be a good time to start accumulating the longer positions (1+ year play).

I still like the financials for July so catch em low now before earnings (BAC August 10 calls for example).  Just my 2 cents.

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#10) On June 22, 2009 at 9:30 PM, anticitrade (99.66) wrote:

Hold on to your butts.... This may be a bad month.

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#11) On June 22, 2009 at 10:37 PM, edbbear (< 20) wrote:

Is it too late to short? 

 I wonder if the powers that be didn't prop up the market just long enough to make put options expire last Friday before falling into the money. 

I felt like I should probably go short last week but I didn't have the guts.  I don't think the market is going higher but it could trade sideways at least for another month or two.  There is a lot of manipulation going on.

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#12) On June 23, 2009 at 4:06 PM, SolarisKing (41.40) wrote:

edbbear,

I am not the right person to ask, but NO it is not to late to go short. There are some fools that are saying back up to 920 and then down. Check goodvibe4ever blog. the most recent one

 -solaris

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