Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Shorting the Big Banks (e.g. JPM, BT, CMB, CCI) -- Ignore unavailable to you. Want to Upgrade?

To: HiSpeed who wrote (56)	9/6/1998 8:28:00 PM
From: KM	Respond to of 268

I couldn't agree more and here's more food for thought on that subject: Wrong! Tactics and Strategies: The Fed Cries Uncle By James J. Cramer 9/6/98 4:30 PM ET Enough is enough. The Fed said Uncle Friday night. The bias is to ease. It is the first step we have toward returning to a semblance of order in the market and it is a clarion call to at least consider buying if you have not bought during this decline. I know during the previous week, I was worried, and we lopped off 5% in a hurry. But Friday's session was a joke. The selling in names like General Electric (GE:NYSE) or American Express (AXP:NYSE), big cap names that have Asian and Latin exposure, but are not idiots cruising along the road blindfolded at 100 mph, was too much. Now that the Fed is moving to the bull camp, away from its angry at higher prices stand, these stocks can be bought. Maybe not even for a trade. Let's get out the old Fed Ease chart. At the first sign of easing you buy the financials, particularly the savings and loans. I have been banking that the Fed was going to blink once Latin America got thrown into the stew. This group has been annihilated, laid to waste, drawn, quartered, diced and sliced. The most important reason why this group goes from being a sell to a buy is that the yield curve, burned by high short rates, rates that are higher than long rates in most instances these days, is crushing them. But if the Fed eases we should see short rates go down and long rates stay the same or even go higher as the bond vigilantes -- if there are any of them left -- go apoplectic that with employment so tight, the Fed is easing. What a bunch of garbage that is when the world is on the verge of a meltdown, but these guys have always been small-minded. Lots of times short-term trends change after three day weekends. Right now I am betting that when people look at the prices they are left with from Friday they will buy not sell. The Barron's is a classic this week. Everything that I am short they say is awful and going lower and I sit here and pray that everyone reads it and takes action so I can cover my shorts. Without Barron's I think my shorts are about to cost me some money after weeks of coining it with them. I know Jeff and I are both predicting it. I called him just now and asked him, "Are you feeling it?" And he said "The Squeeze?" Either we just did a true Vulcan mind meld, Bucks County, Pa., to Westport, Conn., or it must be obvious to everybody that with the Fed blinking, that's the signal we need to do some serious bottom-fishing Tuesday. Now if only those darn futures don't open 27 points higher letting nobody in and causing the whole thing to go right back down. Random musings: Technically, I could not help but notice that the advance decline has improved and that we are down more than 10% from the 200 day moving averages, both things that spelled bottoming out in my 1990 analogy. If the savings and loans take off, I know I am right

To: HiSpeed who wrote (56)	9/7/1998 1:44:00 AM
From: BDR	Respond to of 268

<<My reasoning why I think the market could ramp Tuesday is the Fed blinked! >> washingtonpost.com Tokyo Stock Prices Soaring Sunday, September 6, 1998; 10:51 p.m. EDT TOKYO (AP) -- The U.S. dollar dropped to a four-month low against the yen Monday after Federal Reserve chairman Alan Greenspan hinted at an interest rate cut to prevent a U.S. recession. Tokyo stocks soared.

To: HiSpeed who wrote (56)	9/7/1998 9:21:00 AM
From: DAMY	Read Replies (1) \| Respond to of 268

I agree. Tuesday should be a strong day for the banks and the market in general. The banks seem oversold, and coupled with the fact that Greenspan hints at lowering interest rates, and the overseas market soaring today, the US markets should take off. The dollar is weaker today but should gain if the US markets go higher.