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Monday 22 October 2007

The World is coming to an end

I'm likely to have record traffic on my blog today, why? Because people are freaking out and looking for answers to why they are losing money in the stock market......

Good news, the market isn't going down forever, last time I checked the trillions of dollars invested in the US stock market was invested LONG,,,,,not SHORT...

The media is likely to bring up the R word today,,,,,RECESSION.

Does a market decline= Recession every time the market goes down now??

Do we blame the market declines on the US dollar, rising commodities, and subprime defaults?

Should we ask Greenspan what he thinks the odds of a recession are now?

When the NYSE has to get loans from the government or other banks to cover their loans from the buying of stocks on sharp market declines, does this signal a possible area to re-enter and BUY?

Do we wait for the FED to step in with a interest rate cut?

The question is, why is the market down?
What has changed?
Do CEO's and investment banks want another rate cut? ,,,,,,IMO,,,YES

How would these institutions create the best setup in getting the FED to cut again?

Create a selloff in the stock market,
Have the media come on with talk of Recession, subprime, inflation, forclosures, Black Monday
Create big headlines which will seem like if the FED does nothing, the market will plummet to zero,,,,,in the words of Cramer "We have Armageddon"
Do all of this a week before the FOMC meeting

Have a good day everyone,
Trade well and think before you act

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