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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: ChanceIs who wrote (259770)7/10/2010 12:04:45 PM
From: PerspectiveRead Replies (2) of 306849
 
<how come I got clobbered on my COF short this last week?>

The machines know only momentum. They're likely Investor's Daily momentum chasers only worse. They can't even read the news and understand that the disappearance of unemployment payments to 2 million will cause a spike in delinquencies starting last week.

The machines will be Wall Street's undoing. Position against the machines, but with enough breathing room to withstand months more of irrational pricing. When the reductions in general liquidity eventually catch up with stock prices, the machines will all trip over each other as they did two years ago, trying to squeeze through the tiny portal labeled "EXIT".

Heaven help the real economy that has come to rely on these gamblers to finance their actions.

`BC
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