Monday, September 08, 2008

Problem Salved


Bank stocks around the world are going through the roof, that's 'cause they've all been bailed out. You don't see the homeowners in Kansas going through the roof 'cause they're not being bailed out.
That's Jim Rogers referring to the nationalization of Fannie Mae and Freddie Mac.

And don't pass up the recent interview with Jim Rogers whereby Jim eloquently bashes Bernanke and the Federal Reserve and waxes historical precedence regarding the deterioration of America's economic dominance.

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As far as trading, I still contend that keeping it brief in this environment is the best opportunity for capturing volatile moves without the overnight risks associated with this market. I have roughly 100 names on my current Live Short List (all of which are related to commodities) and I think every one of them opened higher today than they closed; and virtually every one of them reversed lower on the day; clear distribution still for commodities.

There were some positives signs elsewhere in today's news-driven market, however, but I am going to save those for another time; until I see the market is able to rally further and reverse the broadly defined trend. Besides, if we rally further it may not be so dramatic for a few days or so, but if we resume downward like so many commodity-based and tech stocks did today, then that will be much more exciting as far as making money.

The heart must come first.

Longer term, I am not the most bullish sort (sot), but short-term I do recognized there is a chance for a September low in the market and I am not going to let my better judgments keep me from taking advantage. I'll keep looking to attack short for now, but I am quietly compiling areas of strength so I can adjust to that side of the tape quickly; should the overall market picture begin to paint a September bottom.

In other words, I'll keep firing until I get hit myself. Then I'll turn and run.

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