Friday, September 5, 2008
Markets Zig and Zag... Chapter 224.5
How many times have you heard me say that "markets zig and zag, they don't zig and zig."?
Yes, the Credit Default Swap is going to crash into the Oil import crisis - but not next week. The market's intraday turnaround today MUST be heeded - ESPECIALLY if you are short.
Look how many highly trained, well educated, fantastically experienced hedge fund managers BLEW UP this year. What happened? They forgot Jeffers rule Numero Uno, "Markets zig and zag..."
If the market gets something it wants, be it an interest rate cut, a ruling, or a bailout of Fannie Mae, you do not want to be on the short side of things or you will be picking your guts up off the floor and stuffing them into your suit pockets for that long train ride to oblivion, and as an occasional unfortunate commuter of that train I can tell you that it really, really sucks. It is hard to enjoy a good meal with your guts hanging out of your pockets and dragging on the floor. When it is really bad you occasionally trip on your own guts. Yuck!
When the wind changes, don't just stand there, do something!
Mentatt (at) yahoo (d0t) com
Posted by The Short Story Man at 5:37 PM