get out of financials & retail. at best the majority will tread water in a new trading range while the money again begins to leave and these sectors resume distribution. A few of the really oversold dead companies walking (thinking LEH, MER, maybe UBS) may come up momentarily for air but the underlying balance sheet trainwreck will be unchanged. There is a popular notion that the averted implosion of FNH & FRE is a life-preserver of sorts, but ask yourself, a.) what does it do to change the overall unsustainable consumer/corporate leveraging of the past seven years? b.) how is the underlying credit quality of the collateral underpinning your local bank's delightfully illiquid CDO^2 improving? and c.) do charts lie? maybe any rally here will exceed my expectations but there is a reason these charts seem to be succumbing to the inevitability of gravity.
not too much to get excited about here except a new trading range between 140 - 155:
same s**t, different gutter:
I also think NDX & Russell will underperform this coming move.
one place I am definitely looking to get extremely long is EM - India, Korea, China, Bovespa - I am looking for a veritable United Nations of upside book exposure.
Remember
this little ditty? it's our 1 month anniversary, and 400+ points down I think it's high time to make nice think about getting on her good side. To wit:
so short-term, I look long (after all, the boyz love to snap it back on deteriorating momo, really attunes the pavlovian response from the weak hands and flushes the day-traders):
LT, well...
cheers all
Edited by MacRo, 07 September 2008 - 12:36 AM.
