OMG, the Mortgage Back Securities issues in US is starting a negatively occurring feedback loop now...
So, again and again... the bargain hunters will be either dead or crippled tomorrow.
No choice, they deserved the punishment.
Moral of the story 1: Who the heck so stupid that will sell share to you in a cheap price (unless the price of the stock is cheap for a reason, or they anticipated the price will go lower)?
Moral of the story 2: Nobody are stupid to short future as low as 1120 when the market is still 1160 in a large quantity... unless they have big junk of stock to sell in a fast and furious way tomorrow; i.e., some what like a 'protective put' strategy, short the stock and short future to cover the liquidity cost with the gain from future. (Hmm, this lessons will be taught in more detail and in more practical sense tomorrow. Investors are advised to learn and watch carefully how the stock drop and finally converge with the future spot price)
Moral of the story 3: Stock market is a gold mine as they are always suckers the bargainers in the market. Don't agree? Just calculate the volume and guess how many suckers bought stocks around 1250.
Note: This applied particularly in a heavy volume downtrend that depict high opinion divergence among market players...
4 comments:
DJIA recovered.
But even if it didnt, I have one comment.
Forget about the discount with FKLI. The volatility makes it cannot be analysed by mere discount.
Luckily, I didnt carry anything overnight. Hehehe.
Futures will shoot up and shoot down to trigger stop loss. And best part is, they remove the queues first prior to trigger, so you d get filled like 20 pts away from your stop. Good huh?
boofett, i like your analysis of the mkt but cannot help but notice how condenscending you sound when you address other stock players - words like stupid,they deserve it, suckers etc. bro, not everybody is an expert like you, and everyone at one point or another is/was a fool but you seem genuninely happy to put people down just because you experienced enough to read and act appopriately, and some others weren't. I hope you continue to share your thoughts but no need to demean some people just cause they not as smart as you. cheers!
hahaha, thanks for commenting...
these words means no harm, as if they is someone stupid, the other side that transact the stock is called smart... (somehow, like yin and yang, which is good and which is bad? as with stupid and smart, there are also benefit to be stupid and drawback to be smart)
well, suckers, stupid is not an adjective in my article, they are more like a nounce...
i used to the terms and writing in my diary as a way to shorten the description of different categories of player...
anyway, i also never meant to define suker and stupid for any person... just a way to make my article more understandable... and hopefully, more interesting...
so sorry that create bad experience for you. I sincerely apologize for this.
no apology needed, m'friend. just that i'm sure, like me, you have seen 2 sides of the coin before. and for someone who lose money and come to your blog for advise (or to learn), and kena again, aiyoh. just my 2 cents, thank you for your reply. trade safe, man!
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