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Yesterday a buddy called and was all hot to start shorting the market. The dude's a fool in general, but he was seeing Citi stock at 10 cents a share and he was ready to jump in...ride this puppy all the way to 25 cents and then bail. He's lost a ton of money and is anxious to start making back. It's like watching a gambler going bust and hearing him say he's just one big hit away from being back "in the money".
My bets are he's already put in his sale order and will be refreshing his browser constantly as others see the same short game and are gonna drive demand up just enough to make a quick profit. Then back down she goes.
This market is still loaded with debt bombs...it's stagnating the economy...more like paralyzing it and the market has few real players left...anyone who still has any value is nutting it away. I'm reading of people loading up on 0% interest treasury notes just to ensure they don't lose...holding onto what they have. Until the credit mess is sorted out, this depression will get worse and the markets will continue to fall.
The question is what type of fall...a quick one or a slow one. The bail outs have soften the blow...but the bottom is still not in sight and as long as that's the case, the markets will continue to erode.
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