You Just Saw Capitulation!

I've said many times, its a good thing 99.9% of the public are clueless sheep or we'd be at 5000 Dow by now.

Guess the sheep woke up. A little late, but thats par.

PS That BS they've been palming off for years about how you HAVE to be in the market cause the market is a good thing.


Can they be sued for false prophecy?

Oh, wait. The ones you'd be suing are broker than you. Never mind.

Check out PRU for a taste.


PS Buying stocks on margin isn't much better than what those toothless deadbeats did with houses.

Speaking of deadbeats. If I bought a stock on 90% margin, or even 50%, and it went down enough so that I owed the broker $, I would still be on the hook for it. Legally.

So how come those scum can walk away from an underwater mortgage? Send back the keys? wtf is that?

I say, you bought it, you pay for it asshole. Or jail time.
 
Quote from flytiger:

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Listen to the whole interview. He explains what and why. You have to understand the billions in 401k's, and the people don't pay attention. This week, they started opening the envelopes, and they are scared to death. This weekend is going to be frightening. I dealt w/retail. they will leave tomorrow, and on Monday, they'll be a deluge of redemptions. when these open ended funds get redemptions, it's as simple as the secretary bringing in the forms, electronic or snail mail. To dig your heels and 'take a position' is suicide. If you're perfect, you'll make a few basis points and brag. Personally, I don't give a shit if you're spot on, and the truth be known, no one else does either.

Folks are down 45% in the quarter ending 9/30. They'll call in and check by phone and find out they're down another 25% plus since then. That's 3000 Dow Points. These managers will have to dump, and I mean "dump" stocks he doesn't want to. You want capitulation? You get long those contracts, and put me on speed dial. When you either puke or shit yourself, call me. That'll be it. That's what true capitulation is. And it's like combat. You can't explain it. You have to experience it. You won't soon forget it, either.

BTW. Margin calls. Wheelbarrows full of those. I used to be pretty good at predicting those. Let's see. from the end of September to the third, the lows weren't too bad. Bad but not horrible. on the sixth, the market broke, and each day since, has followed that pattern. They'll be a ton of calls for several days, and even tightening, like I heard at IB. Another source of supply with no demand. If you go in for more than a trade, you can easily be overwhelmed. Your job is to make it till Tuesday. They'll be plenty of money to be made.

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=djia&sid=0&o_symb=djia&freq=1&time=4

Oh, btw, the public will sell the good stuff to hold the crap. Find stuff that hasn't broken yet.
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Great post.
 
Quote from Dr. Zhivodka:

I must admit I never thought we'd hit 8500 on the Dow. However since we have as of tomorrow I'm gonna start averaging into the market on a scale with my long-term "safe" money. I don't expect to catch the bottom but some of these shares are being unduly killed.
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Which ones ? BCS, BAC are cheap now but for the reason.
CanRoys look cheap now but oil can go lower . what sector do you feel is undeservedly hammered ?
I feel that another 10% drop in DOW will happen this month.
Thanks
 
Maybe NOW this is capitulation?

Or was it really day before yesterday?

Monday for sure?

Or at least by Tuesday...


You just have to drag out that old chestnut "the market can be irrational longer than..." :p
 
Quote from stock777:

No bottom until the first Wall St Scumbag is hanged publicly.
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LOL but there is a truth in it.

This might be a good election campain slogan .

"When I ........... am elected president I will prosecute all Wall Street scumbags ! "
 
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