CFZ E-Wiggle Workspace Message Board

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Strategies & Market Trends : CFZ E-Wiggle Workspace

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To: John Pitera who wrote (9320)	11/15/2008 9:45:14 AM
From: robert b furman	Read Replies (1) of 41411

Hi John and Ray, Keep in mind we are seeing a strong collective reduction in total shares shorted. The shorts are being unwound at very profitable prices. When that money is reapplied and the money on the side gets implemented the next wave could well be up. The delevering that is going on from the capital base erosion of the global investment banks has walked through all asset classes. It has punished the most - those that were levered the most. I think there are a lot of conservative investors making some very opportunistic purchases (of a life time) as those who are still too levered are shaking in their boots fearing the next shoe to drop. During major bottoms new lows roll through different stock sectors and different capitalizations size stocks. This takes time to roll through all the corners of the stocks. I say 4-6 months. During this time we'll see false starts (short covering demand on depressed stocks). We'll hear fear rumors of the next shoe to drop (remember China was the shoe that never dropped in the Asian Contagion). We've seen rates drop to zero globally. Comodities have imploded - Think back 6 months ago or a year ago - PPI dropping 4.7 % in one month! Gas at 1.79 !!! These are all tonics to the system,but it takes a lag to get feeling healthy after you ingest the tonic. These are times to accumulate great value (without being excessivly levered). I think it is time to find the great next high growth stocks that are financially strong and will be the first to lead in the next recovery rally. We need to quit excessing on the next shoe to drop and get focussed on how and where the next 6 bagger is coming from. JMHO Bob P.S. went into Scottrade office to make a deposit and they said they are making more new accounts than ever. The American consumer is not dumb - at least many of them are not.

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