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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (68822)	8/25/2006 11:35:59 AM
From: yard_man	Read Replies (2) \| Respond to of 110194

altar.

To: russwinter who wrote (68822)	8/25/2006 11:58:27 AM
From: Rarebird	Respond to of 110194

This is an extremely speculative market that can break at any moment. It's a good time to be short because the speculation is beginning to reach a feverish pitch and the fundamentals continue to dramatically worsen on a daily basis. You do very good work. However, very few market participants pay attention to fundamentals. What they will pay attention to is a whole host of companies preannouncing earnings shortfalls over the next 6 weeks. Currently, I'm 79% Cash and 21% short (the Russell 2000 and S@P Midcap 400). I cannot increase my short position (even with ETF"s from Profunds) much higher than that basically because these markets are somewhat rigged. Nevertheless, the odds still favor, at the very least, a very nice decline over the next 3 months. At worst, I can easily envision a bear market on the horizon with the small and midcap stocks leading the way down. This kind of rabid speculation in a trendless market is extremely dangerous for the bulls, especially when the fundamentals are falling off the cliff.