Black Monday 13 October 2008

I kinda like this picture. Creativity at work! Many people have come to me and say, "Hey dude, this is a bottom!!! Buy now!!! Sell your put warrants for goodness sake." I don't know why but people love to give lots of comments and they are actually doing nothing right now. Noises of the markets. Maybe there are lots of smart people out there who really know a lot of things. I don't know, I'm not so smart after all.

Alright, enough ranting...

Black Monday

You know me. Friday was an interesting day. Intraday wise, Dow broke 8000 at 7900. For the whole week, the market was down about 19%! OMG. Seriously speaking, as bearish as I am, I didn't expect the process to be so fast. I really think that it will take time to slowly sell down that's why my put warrants are all of long term maturity dates.


From a chartist point of view, on a weekly chart basis, we have not seen a bottom. On monday, the bond market is close. To some extent, I don't really like friday's rally. I believe it might be short sellers at work. The last trading hour of thursday was amazing. I still remembered that at 3am, before I went to sleep, the market was just down 150 points. News on how to save the world is supposed to be announced over the weekends. Well, I don't know what the smart bankers have up their sleeves but they are certainly quite smart =D.

Anyway, I like the idea of a black monday tomorrow. Self fulfilling? The past few mondays have been quite crazy if you actually look at the statistics. I see no reason why will people want to buy into this market at the moment. There is no confidence at all.

Again, I will like to emphasize that this is not a bottom. There is no panic selling at all. We will see one when everyone thinks that there is no bottom and starts to sell like there is no tomorrow. This will bring a lot of people back into the market at least momentarily.

Oil

Well, I think that once the panic is over. You shouldn't be buying stocks. Buy some commodities. I really like oil alot. I think that the fundamentals of oil is still there. I will want to buy oil in the future as well. I mean oil and not oil stocks. I will like gold also. This is my stand so far.


Black Monday 13 October 2008. R.I.P World Stock market


I haven't met a rich technician

Jim Rogers