Wells Fargo
It’s interesting that Wells Fargo came in and sniped Wachovia from Citi.
Capitalism is still alive and well.
I got up at 3:30 AM, glanced at the action and promptly went back to bed.
Today will be a defensive day for me, trying to rest after playing a hard offense that was surprisingly weak. My A game hasn’t been evident for the past couple of days.
The short euro trade is the brightest spot in my universe right now. The only problem with this trade is that it’s been painless, in fact it’s been too painless. Makes me wonder when I’m going to have to pay the piper.
I wonder if there’s going to be a rate cut.
I wonder where gold is going, and how low oil can go.
I’m confused about this “Bailout” and wonder what will happen if it doesn’t work.
With a 28% decline in the S&P from this time last year, how much more room is there on the downside. My friends have been holding a pool to see if/when the DJIA breaks 10,000. I passed on that pool, as there’s better ways to play it.
These markets and the price action has been fascinating. One can learn a lot from these markets. With all of the time I’ve been spent on the screen, I wonder if the “observer effect” really works on such a macro scale.
If and when will we see blood on the streets?
Jeff
Hi Jeff, I’ve stopped trading now but I do like your configuration on the eur and gold. If I had one trade it would be short gold, although over the longer term. If the Dow does drop through 10k, the Nikkei doing the same can’t be far behind.
Anyway, I hope the market calms down so you can get back to your book
Have you seen the Espresso Book Machine? Pretty impressive with powerful implications for self-publishing and printing to order: http://www.ondemandbooks.com/video.htm
Caravaggio
October 3, 2008 at 2:35 pm
Hi Jeff,
If scruffy dogs fighting over a carcass means capitalism is alive and well, so be it.
I don’t blame you for promptly going back to bed, not a heck of a lot happened.
The bailout will have to happen I think. If not, then you’ll have your blood in the streets. The issue on the heels of that becomes – then what? If we don’t see any real movement of these log-jammed assets (to put the term generously), I don’t think we are going to gain much. I’m still watching the money-markets like a hawk. That’s short-term paper that needs to be rolling over for it all to keep working. If the public becomes uncorked … wow.
Hey, I have a nuisance profit in Potash. I’d better take a picture, because it might be the only one for a long time.
Cheers,
George
George Parkanyi
October 3, 2008 at 4:53 pm
If this bailout and liquidity works then the fed may actually be able to lower rates again. Not that a managed currency is entirely “capitalism” either.
Ale
October 3, 2008 at 5:35 pm
Caravaggio:
Thanks for the link. I don’t know what I’m going to do regarding finishing my book. This week has taken it’s toll, and I plan on resting.
George:
No matter what, we might still see blood on the streets.
Ale:
Prudence would dictate that the Fed lower rates, regardless.
However, it’s a political season and anything can happen.
Jeff
masteroftheuniverse
October 3, 2008 at 8:28 pm
The broken banking system meant that the fed wasn’t driving rates in any meaningful way, hopefully they’ll get some ammo back if the banks start trusting each other.
I’m beginning to be optimistic that financial markets are finally appropriately terrified.
Ale
October 4, 2008 at 1:38 am