The notstop party in equities is really heating up today as people are lathered up to buying AAPL, GOOG, GS any and all commodity plays as the dollar is CRUSHED yet again. CIT, CAPMARK chap 11, FNM, FRE, 10.2% unemplyment - total nonfactors - people are happy to chase stocks....risk is no longer a four letter word, since Buffet announced his purchase of BNI the market has rallied almost 6% in a strait line. the SPUZ have been sitting at their highs of up $18 for the last half hour - bears are once again crushed and bulls are sipping margaritas. I cant think of any good reasons to be excited about the US economy - there is 3 trillion in stimulus out there and jobs are still disappearing - what will it take? The vix is plunging, bt not as much as you'd expect on an uber bullish tape day like today.
Last week I commented that trend lines had been violated I know now why I dont believe in charts - that violation has vanished like a fart in the wind.
JB
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'The entire world is a very narrow bridge but the central and crucial point is not to be afraid at all'. Rabbi Nachman of Bratislav.
ReplyDeleteMore crudely, we are all 'farts in the wind' -- here today, gone tomorrow. The only remedy is to have as much strength as you can muster.
fp
days like today kill absolutely kill my strength levels
ReplyDeleteMay not have been a good day, but NOBODY could predict today's upward move (w/o inside info). It's not rational. We are in a 'bubble' of optimism. It has all the signs.
ReplyDeleteCongress is legislating the economy into oblivion and the national debt will sink the dollar. I'm not sure there is any confidence in the real business sector to support true job growth. Most of the jobs that have been created are public sector -- our tax dollars and, therefore, less for consumers to spend. And on and on and on...
However, who knows how long the optimism can last and to what levels before some event triggers a dose of reality.
I'm not sure I understand 'buying volatility' but, if I do, I would keep it balanceed between calls and puts. Nothing is predictable.
Did you act on Ford? It had a good day.
fp