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Monday 14 July 2008

Run on the Banks

You know there were periods today where I thought that the market was just going to fall 1000pts in a few seconds. That is the type of fear you find at bottoms.
You know the issues with the banks even has me worrying about my bank. I think we are at the climax point of all this bullshit with "writedowns". It is the perfect time for all the dumbass investors to put on PUT hedge positions on their stocks and for the FED to orchestrate some bullshit rally right before OPEX this Friday. It's as if money is just evaporating into thin air. Seriously, Can C, BAC, and WM go bankrupt?
THE FLY discusses Prosecution of the Short Seller- after some guy came on CNBC and said that we need to find the Short Sellers that were making Rumors and causing the bank stocks to tank.
Who's going to rally this market if all the banks are going bankrupt or they are so broke they are selling stock to raise capital? The trend continues down and short covering rallies are faded.
What are you suppose to do as an investor?
SELL all your stocks
Take all your money out of your bank
Watch the money under your your mattress become worth even less as the US dollar tanks
You know 1 year ago I complained all the time about how the market shouldn't be making new highs and how the rally last year, particularly in CHINA was bullshit.
Now I'm doing the exact opposite. Thinking today is the day we get a reversal and rally. The only thing I need to do is follow the Dam chart and throw away all FUNDAMENTAL BULLSHIT that the BANKS tell investors to consider when investing. What a bunch of bullshit.
Lets remember one thing, all these banks are operated by HUMANS, and I know for a fact that Humans can be real stupid. If the market doesn't CRASH this week from a FEAR of RUNNING ON THE BANKS then the market is probably going to rally like a mother.
Are there any SAFE banks anymore??? Is Washington Mutual the next IndYMac? Holy Crap!


Trade review for the day-
I thought we were going to rally today, but I stayed true to my system and ground it out. Today was a very difficult day for me. I was up $300 in the first hour but then I let my short position on ZN get out of control when a number of the bank stocks spiked lower on fears of a run on the banks. I was down about $800 from getting chopped to pieces near the afternoon lows, but made back most my money at the small 1:30pm reversal. I can't believe I've been trading for 5 hours, it seems like 2 hours. I'm not trading the last hour, getting some food and locking in profits.
What a choppy mess-




Checkout the TRADING ARCADE for daily P/L (the number of traders is increasing, this is getting good, I like the format too, a lot cooler than EliteTraeder's P/L thread)

How to survive a real Bear Attack-

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