Beware !! Big Reds are awaiting!!

Quote from athlonmank8:

The crux of the matter is that you cannot market...(therefore value) worthless assets. It's more than an interest rate problem. It's a combination of ARM resets, and not being able to market assets that were previously worth SOMETHING.

The books on these companies were "cooked". No one cared though because if everyone does it.....then it's all fine and dandy.

That is until it all comes undone.
More...

The assets are not really worthless but there is a current lack of liquidity. Eventually this will right itself, but to be sure, money will be lost. But the mortgage paper is not going to zero!

Now on another thought, what do you guys think the probability is that a 50 bp Fed cut is already priced in so that if come Tuesday the cut is as anticipated we get the usual antics and then the market sells off? Of course if the cut is less than expected, then the market also sells off. I'm having trouble accepting the premise that the market will go a whole lot higher regardless of what the Fed does. No one seems to want to be short ahead of the Fed! That seems to be what todays, and probably Mondays, sideways holding pattern is all about. Could this be the Granddaddy of all Bull Traps! Those few brave enough (I'm certainly not) to go into Tuesday massively short ,may close out their trading careers massively rich (or massively broke!) come 4pm Tuesday .
 
It's funny but with the dollar turning up a bit... in the long run the market might react better to 1/4 than 50 because it would indicate a balance of thinking tilted toward growth. The signs are so ominous in economy as it is, 50 says we have a lot of lifting still to do. There will be very little reaction I would think and sell the news will probably kick in.

Cycle theory is saying a sharp low around the 18th and then a big rally- I'm going with that.
~stoney
 
You believe in conspiracy theories such as the one about a few hundred people running the world and have been for hundreds of years. Some say that they start wars etc to make money and control things etc.

If you are open to that then consider that this may be the biggest stick up yet. Some people are going to be buying $300-400 billion of debt for 20 cents on the dollar and selling it in 5 years for 75 cents+ . A trillion bucks in a few years. Unbelievable.

What a great way to make money.


John
 
Chop and light volume is on its way.

Hope you rode the last 900 points up in the last 9/10 days.

Volatility may kick in if "news" breaks.

This is it folks,

RED and a Reversal to trend is not going to happen into an election year, this early.
 
Quote from EMRGLOBAL:

Chop and light volume is on its way.
Hope you rode the last 900 points up in the last 9/10 days.
Volatility may kick in if "news" breaks.
This is it folks,
RED and a Reversal to trend is not going to happen into an election year, this early.
More...
OF COURSE, Hillary appears to be in charge.
She's SO CONFIDENT in all of her ideas.
Yep, the market will say: "we're saved by HILLARY...hooray !".
Whew, once the REALITY sets in....it's gonna be ugly in the equity markets.
 
Quote from piezoe:

The assets are not really worthless but there is a current lack of liquidity. Eventually this will right itself, but to be sure, money will be lost. But the mortgage paper is not going to zero!

Now on another thought, what do you guys think the probability is that a 50 bp Fed cut is already priced in so that if come Tuesday the cut is as anticipated we get the usual antics and then the market sells off? Of course if the cut is less than expected, then the market also sells off. I'm having trouble accepting the premise that the market will go a whole lot higher regardless of what the Fed does. No one seems to want to be short ahead of the Fed! That seems to be what todays, and probably Mondays, sideways holding pattern is all about. Could this be the Granddaddy of all Bull Traps! Those few brave enough (I'm certainly not) to go into Tuesday massively short ,may close out their trading careers massively rich (or massively broke!) come 4pm Tuesday .
More...

Right, .27 according to E-Trade's #'s. That's almost a 75% hit. So to act like it's not substantial is simply not true. Everyone's acting like asset devaluation is something that has no impact on anything.
 
Quote from EMRGLOBAL:

Chop and light volume is on its way.

Hope you rode the last 900 points up in the last 9/10 days.

Volatility may kick in if "news" breaks.

This is it folks,

RED and a Reversal to trend is not going to happen into an election year, this early.
More...

Right, No big red or green on Monday, but sideways possible. But who cares there are always some opportunity to flow with current. Period.
 
Till March Market is not in control of anyone.. Its gonna be green for few days and big reds.. Overall gain may not be more than 14k in dow or 2650 in nasdaq..
 
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