Newsweek’s cover story this week is titled “Road To Recession” and the picture is of a desert road.
I think this is significant. It tells us that many people are now of the opinion or at least contemplating a recession. And a lot have surely made investment decisions in accordance with that. That means: the easy money on the short side has been made.
The Wall Street Journal ran a great article on Monday titled “How Skepticism Can Fuel a Rise: A Rally Too Good to Believe Also Has Cash Waiting to Enter; Acute Optimism Is What to Fear” (subscription required): ‘It is taking…
Great! Right after I tell everybody to go long the S&P 500 by buying call options the market has it’s worst day in 6 months. The Jan07 SPY 137 calls that I recommended lost a third of their value today…
After yesterday’s huge sell-off I wrote: What say I? DON’T PANIC. Jim Cramer always likes to say: “Nobody ever made a dime by panicking”. In fact, this is the time to have trust in your reasoned convictions and double down. …
We’re 9 trading days into 2007 and I thought I’d comment on some of the things I’m seeing in the market. (1) Changing Perceptions About the Fed – When the Fed minutes were released on the year’s first trading day,…
Wow. What a turn around in just a few days. When I was writing my previous post after the close last Tuesday the market was starting to look up. We’d had a nice rally on Thursday and Friday (Jan 11…
Puts Calls Put/Call Ratio February 117,646 134,162 .88 March 236,974 160,127 1.48 April 43,401 9,966 4.35 Source: Scottrade, as of approx. 3:00pm EST What this tells us, I think, is that there are still alot of bears out there. Even though options buyers are…