Friday, August 7, 2009

hmmmmmmmmmmmmm - confusion

Another weak close - the SPUZ closed at the lowest level since early this morning - so the question is where to from here? If you have been reading for the past few weeks I'm not the guy to ask. I have been dead wrong. Luckily my arbitrage stuff has been bailing out my bearish market bias.
People are once again acting as if equities and debt are riskless. I do not believe that to be the case. Fannie mae and freddie mac are still hemoraging - and if they are hemoraging its because there is still massive stress in the housing sector - maybe things have bottomed price wise but a bottom doesnt enable someone to pay there mortgage bill if they have lost there job.
GS was very weak all day today closing down 1.93% , Im afraid they might have had to much good fortune lately the magnifying glass is focused directly on them and there G-D like ability to make money. Im wiped it has been a tuff weak - but Im still kicking and ready to battle again next weak.
If this market acts like it has been for the last few weeks , sunday night the SPUZ will open higher and remind people that a weak close means nothing....

Remaning short the market and nervous,

JB

No comments:

Post a Comment