Friday, October 24, 2008

The Great UnWind Continues

I love the conversation this morning when the futures were halted, lock limit down 550 pts. In particular my favourite is the reference that there is no reason for it the limit down. This ailment, in my opinion, is called willful ignorance and seems to be of epidemic proportions among politicians, bureaucrats and financial types today.

For those that have been prepared for this storm(short or in cash), which contrary to mainstream political and financial opinion was well foreseen by many, I will offer the following advice from Jesse Livermore.

It was never my thinking that made me the big money it was my sitting.

Have your stops in place which were put in place when you were of sound mind with no personal attachment to your position. Are you hearing these types on TV telling people that if you haven't already sold it is too late. I wonder how they will feel if, which is quite possible, we see the S&P at 400 or 500? I would surmise they would wish they had sold. The bottom is years away my friends, just like the tech bubble, Japan, gold, uranium, tulip bulbs, etc.

Just as many, in particular Kirk Kerkorian, who is quite intelligent when it comes to things speculative, thought Ford cheap at $8 after it had fallen from over $60. A stunning 75% loss from only $8 as it now sits around $2. Just some food for thought, when pom pom TV trots out the shills, like Ned Riley, telling, no imploring, no begging you to buy, to remember a fool measures his bargains by how many points from the top its has sold off.

Housekeeping notes;

I am adjusting my stop upward on 2 units long of SDS to $101.88 and $95.94 respectively.

I am moving my stop downward on my 1 unit short of CRM to $34.31

I am moving my stop up on my 1 unit long of FXY to $101.68

Good speculating to you all and never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 2 units of Ultrashort S&P ticker SDS @ $90.60 stops $101.88/$95.94
Long 1 unit Japanese Yen ticker FXY at $97.15 stop at $101.68
Short 1 unit Salesforce.com ticker CRM @ $56.05 stop at $34.31

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