January Stock Talk Part IV

Leading off  the profundity that thanks to the Aussie Open one can be baked all night and day with something to watch...get through the Open coverage right into the opening of the Street...

The Russell 2000 Index of small-cap companies today dipped into official bear-market territory, which is defined by a 20% drop from the highs. The Nasdaq is down nearly 18% from its high, the S&P 500 almost 15%, and the Dow a little more than 14%.

 Thankfully I am finally in the making money off TWM.

 And  Andy Roddick may be in a personal bear market himself...Kohlschreiber is playing incredbly well.

Love tennis, coached it a little bit, and watch the Ozzie Open each year.Blake is looking good so far, hope he continues to stay in form. Roddick might jump out of a window, he went down to Kohlschreiber.

 Fave tourney is The French Open...gotta love the red brick.

 As for today's market, I hope it settles into a nothing market...people need to think carefully before getting into any positions before the weekend.

 GL guys, I am simply watching carefully for now.

 

 I dunno if I need that type of drop, but I know what you mean CC...

  Blake has never beaten Grosjean in his career. I hope he earns his first W today.He is 0-3 vs Grosjean

  I am placing an order for some gold bullion, adding to GLD positions already in place. I like investments that are tangible.

 Drugs...I advise drinking, not driving, and perhaps  Napalese Temple Ball. I should be in Amsterdam...may look into a spring visit if the USD is worth more than a quarter by then.

 

 PS

 I would not add real money to gold at the moment, the market is highly speculative and I suspect due for a correction. But I am buying small quantities simply because I like the looks of the American coins, and this is simply sort of a dividend reinvestment from moves up from$250 gold positions.

In general I agree: no need to be in the line of fire here:

his time though the declines could be much worse (unless you're holding shorts) than anyone might otherwise think.  Not only have mid term support levels broken but longer term support levels have broken too, and that's a double whammy.  In fact, other than initial support as offered in the near term charts, there are no clear support levels offered from our chart analysis.  In effect, there's a bottomless pit under initial support which could lead to unprecedented declines.  If there ever was a day when you wanted to monitor initial support, it is Friday.

I certainly get the same sense of the stock market as I have of the housing market...should anyone come into a windfall of cash, would they really rush out the door to buy a house?? Why?? Plenty to choose from, and patience will squeeze sellers even more.

   faifield?,,,,had some friends who wwent to fairfield u.,,,spent some weekends smashed out of my mind up there,,,clay court,,,,it would seem u will win our bet alot sooner then i thought,,busy as fuck have not been able to post much ,,be back before the close

Feeble rally at 3, down she goes..maybe under 12k?

Blake went to Harvard, not sure where he went to high school...

Dow at 12,040
S and P500 is at  1312
Nas  2323

This might be another unpopular comment but I think if you put 10k in each of the MBI and ABK stocks and hold for 2-3 yrs, even if one fails, you will more than likely triple to quad your money.

Same goes for a few low hanging fruit home builders..say like HOV and BZH as mentioned before.

I know one of them might go under (ABK, MBI) but given the current prices of the stocks, I dont think BOTH go under, maybe neither go under.

For a risk trade, it is definately an interesting gamble. Looking at the call options, there isnt much value going out to Jan 09 or Jan 10 time frames..I would just buy 1-2k of each and go with the common.

 

Damn Clay, you had me going with that big pharma comment for second.    I bought PFE last week in what I thought was going to be a safe place to hang out for awhile, but they're bending them over now as this market burns.  Everything I have touched in 08 has turned into absolute shit.

Good luck with C.  I've been watching the financials very carefully, as they owe me big.  Either way, I'm probably back in UYG 31 days after January 9th or JPM (best in breed IMHO) a little sooner.

The Dow Industrials, for one, have fallen nearly 15 percent since peaking in mid-October just above 14,000. If they were to fall for just a few more days at yesterday’s pace, we’d have an “official” bear market – a 20-percenter – by next Wednesday. The magic number is 11358, for those of you who are keeping vigil.