Roger, I agree. There is still quite a bit of air which could be let out of the internet's balloon. The last hour of trading today was downright ugly (for those long). An aire of capitulation existed just prior to the close, but the market closed before it could run its course. In Japan, the Nikkei will be down very heavy this evening, perhaps a thousand points or more, IMO. Nikkei may not stop until it hits or pierces the 11,000 mark.
The new watchword is going to be *Brazil*, as their economy comes under much closer scrutiny in the days ahead, as their debt comes due and reserves diminish. Many coming economic wildfires around the world, will no doubt effect the earnings power of the big banks. JTC has been saying it for quite a long time, and now the "international banking crises" appears to have arrived at our doorstep.
I am presently 100% in cash, and observing this unfolding situation. VIP (Vimpel Com.) might be a good short play on the deteriorating situation in Russia, although it *was* socked in the eye today. Haven't done enough DD on that one though.
Your model short portfolio has begun to produce some very good short-term returns of late.
Good Luck,
Gary |
