777 crash landing...Game Over?
Monday, September 29, 2008 at 08:00PM It wasn't a Boeing jet, it was a DJIA tank......1.4 trillion wiped out for 700 billion.....To say market just had a catastrophic day is actually an understatement. To say that market participants are utterly disappointed with the turn of events is another understatement. Folks, we have reached an epic level of volatility that probably none of us have ever seen or imagined before. Poli-trading is what this has become. It's a shame.... Fool me once, fool me twice in a week....that is what market players are saying tonight after the vote. Why would they go to a vote??
Come think of it, the failure to pass the "bailout bill", maybe should not be that shocking considering the action proceeding it last week. Still, please don't say Buffett/ GS or JPM picking up WAMU pieces would have happened, if they didn't have word this would PASS!. Everyone has been fooled..once, twice. The big boys, too!. Don't blame , yourself if you got caught believing. We think most market participants just outright refused to believe in the possibility of a failed vote. It's almost unimaginable the risk that has unfolded now. After all this, can anyone imagine what the financial sector, the market, and economy will do if this bill fails? Well, it looks like we'll find out sooner than later.
So is there anything safe out there? If you find one green stock that isn't a bearish etf, let us know! Every commodity stock 20%++ down, AAPL hit around 20%...etc.... For now and probably the next few weeks, cash is the only choice and overnight holding is not an issue. No more heroes, one or two holds can beat you up. Helmets first!. This was not the wash out expectation, more bleeding will come, it just may not come 777 at once.
If you have been sitting dry all along the past few weeks, we'd say good job and it's even more important to curb your enthusiasm to "look" for trading opportunities now. Next few days might be even more dramatic as market will try to find victims to slaughter. Hell, would have happened if the shorting clamp wasn't in???
DJIA -6.98% closing at 10365.45, the Nasdaq,- 9.14% to finish at 1983.73, and the S&P -8.79% to finish at 1106.39