Made it through another night, and it seems the markets are holding their gains, at least for now, these wild swings have really taken their toll upon everyone's nerves. So its still a crap shoot going forward, there will be some people selling to raise cash for fund redemptions, there will be others who will use this rally to realign their portfolios, and still others who will just use this rally to raise some more cash. I do not think this market, or this economy is anywhere near in solving the many problems we all face.
Its also options expiration week, my theory of pure manipulation by some still nags at the back of mine, charts are at extreme oversold condition, and what sectors, and what individual stocks bounce back is still anyone's guess. I mentioned on Friday that I took positions in XCO, and CHK, and a couple of Dry Bulk stocks EXM, and DSX, as to how long I actuall hold them is anyone's guess. I have seen profits disappear quickly in this market atmospehere, and I have learned the hard way that when I didn't take the small profit, it turned into the small loss quickly.
I am amazed that Oil has fallen so much since in peak of 146 a barrel, am also amazed that a drilling bill got passed due to high price of oil, now that oil has drop back so much, am wondering if certain market forces were in play for just that accomplishment. Call me the conspiracist is you like, but I am seeing movements in markets at break neck speed, and we have always have list of easy targets to blame. Then when markets correct you never hear another word from those same pundits.
Read an interesting story Friday afternoon, that the CEO of CHK got hit with a margin call, and had to sell most of his holdings near the low. So if anyone personally thinks that bad trades, margin calls, or just losing your capitol happens to only you, think again, this correction has hurt many in the financial words. So if this rally last for very long, there will be many people who will be trying to pick up the pieces.
Looking forward to the day ahead, lots to read and check this morning.
zab
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