I find it amazing that with a 10% drop in the market reached it is now time to buy? Why? Because P/E ratios are good? Because cash flow is good? The economy is still good and strong right? And therefore there is no recession?
It’s a time to buy right? After all it seems all the professional traders are buying… (It seemed somebody was buying today)
…the next low (read: the next support level) is 1222 of June 13th, 2006. (!!!)
We appear to have bounced back off that level, but that support level is not holding strongly. Don’t be suprised if it falls over.
Countrywide is all but gone. That is the last of the non-bank lenders.
What is even more shocking is - bigger resets are going to hit in September and October! You could argue that we are now pricing in these resets, but that would suggest the market is efficient. Don’t for a second think the consumer is going to keep going - Walmart is right, proceeding forward the consumer is tapped.
Good luck,
Phil
On CNBC Europe there was this guy from Saxobank who talked about how the models of today are illustrating that computers will yet again fail. He was saying how good traders will save the day.
I shorted down a burning ring of fire
I went down down down
And the flames went higher
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