Archive for September, 2008

Don’t relax yet. Hard to tell which is worse. Bailout works. Bailout doesn’t work.

Posted on Sep 27, 2008 by .

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Anytime you have daily ranges in the Dow of near 3% or greater you have trouble brewing — if not already brewed.  We are living the Chinese curse:  may you live in interesting times.  While Wall Street burns George Bush and his cronies fiddle with a plan to keep the Titanic from sinking.  Unfortunately they are like the band and haven’t noticed that the stern is already underwater.  Where are the lifeboats?  Hard assets.

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Lie cheat steal. Bamfoozle the public.

Posted on Sep 24, 2008 by .

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While the Administration attempts to rescue some shreds of credibility from the present credit infarction the market dances back and forth as though empty words and threats of action would restore the government’s honor and credit.  No chance.  They are hoist on their own petard.  Free market capitalist con-men until the last — including their attempt to foist the problem off on the taxpayer.  Astounding how little honor men have when money is involved.  And they impeached Bill Clinton about sex!!

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Lehman falls, market falls, we’re short (since January)

Posted on Sep 18, 2008 by .

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In January of 2008 we were stopped out of our long positions and went short the Dow.  (See chart.) Except for a brief toe in the water in the May bull trap we have been short ever since.  Is this because we are geniuses?  Well, yes but —  No, it is because a simple technical analysis exercise dictated our position and we had the discipline to do it.  The beauty of technical analysis is that you  don’t have to know the future.  You just have to know what to do right now, this minute, and the future takes care of itself.  In this case being short when the market is falling off the cliff.

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