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Politics : Welcome to Slider's Dugout
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From: SliderOnTheBlack10/13/2008 9:24:35 AM
2 Recommendations  Read Replies (1) of 50119
 
Bond Market Closed = Short Covering Rally...

I guess here's where we turn from DUG to DIG <vbg>.



The market's due for a short covering rally, and that's
exactly what we're going to get. I took some short profits
as noted Friday, and bought a few golds (KGC GG NXG MFN, and
the SLX etf for a bounce trade. I expect to short this rally
again, because the problem is a negative feedback loop.

The credit markets were reflecting reality.

The stock market was in denial.

Stocks finally caught on and had a one week -20% correction.

Sadly, earnings estimates are STILL in disconnect and denial,
and they are going to come down dramatically over the coming
weeks, and months.

... and that is not what sustainable rallies are made of.

Not enough specifics from the global bailout... and WHO wants
to be the first to run for protection under the TARP?

1st Shoe was credit markets.
2nd Shoe was stock market.
3rd Shoe will be the economy... and it is yet to fall.

...but, fall it will.

Basic resources will be the bounce du jour... let's see if
we can get a tradeable bounce out of the decimated juniors
and explorers, along with the HUI Horsemen like GG KGC & ABX.

And what a round trip for Aubrey McClendon of Chesapeake?
...live by margin - die by margin. Sad story.

SOTB
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