Stock market is the down!

by harharmahadev Mon Aug 08, 2011 9:44 am

World is coming to the end.

There was the downgrade of the treasury. But it went up. The gold is the winner.

So, what did we learn today?

by charvaka Mon Aug 08, 2011 9:48 am

DGP rules. That is all.

by charvaka Mon Aug 08, 2011 9:49 am

May be I will regret it, but I put in a bunch of limit buys. GOOG at 520, AAPL at 330. DGP at 55 if it gets back down to that level.

by harharmahadev Mon Aug 08, 2011 9:53 am

charvaka wrote:May be I will regret it, but I put in a bunch of limit buys. GOOG at 520, AAPL at 330. DGP at 55 if it gets back down to that level.

You like playing with fire? You might get lucky and catch a bounce after Bernanke comes out with a pro-market FOMC statement on Wednesday.

However, I am extremely leery of investing in these speculative names. I think it's easier to make money on the non-speculative companies / etfs.

by charvaka Mon Aug 08, 2011 10:01 am

Usually I am a conservative investor. But have been taking a few risks lately. Need to get my hands burnt once to push back and resume my usual long-term style.

by harharmahadev Mon Aug 08, 2011 10:05 am

charvaka wrote:Usually I am a conservative investor. But have been taking a few risks lately. Need to get my hands burnt once to push back and resume my usual long-term style.

I'm your conscience. I instruct you to stay away until there is the settling of the dust.

by Propagandhi711 Mon Aug 08, 2011 11:02 am

BAC is down to near 2009 lows....I sold it at 14.95, phew. wondering if there's any benefit for setting limits to buy at 6ish or is it a falling knife?

by Propagandhi711 Mon Aug 08, 2011 11:03 am

harharmahadev wrote:
charvaka wrote:Usually I am a conservative investor. But have been taking a few risks lately. Need to get my hands burnt once to push back and resume my usual long-term style.

I'm your conscience. I instruct you to stay away until there is the settling of the dust.

what does dust settling mean, announcement of QE3? I hope market tanks big time below 990 for S&P on that news so I can buy.

by harharmahadev Mon Aug 08, 2011 11:04 am

Propagandhi711 wrote:BAC is down to near 2009 lows....I sold it at 14.95, phew. wondering if there's any benefit for setting limits to buy at 6ish or is it a falling knife?

There is a chance you could catch a bounce...but is it really worth it? There are so many good companies selling at a nice discount. Why bother messing with rabid dogs?

by harharmahadev Mon Aug 08, 2011 11:07 am

Propagandhi711 wrote:
harharmahadev wrote:
charvaka wrote:Usually I am a conservative investor. But have been taking a few risks lately. Need to get my hands burnt once to push back and resume my usual long-term style.

I'm your conscience. I instruct you to stay away until there is the settling of the dust.

what does dust settling mean, announcement of QE3? I hope market tanks big time below 990 for S&P on that news so I can buy.

I think Fitch and Moody will downgrade US treasuries as well. Then the Euro crisis has to play out to some degree of conclusion. China will slowdown.

Of course, the market will bottom out well before all the events play out, but this time the bottom could be elusive. If the fed doesn't step in with a generous QE3 program, there could be further panic. If the fed does announce a good QE3, the markets could rally big time.

There are multiple ways to play it. Probably call options for SPY at 120 for next month expiry may be good. Atleast, your loss is limited.

by harharmahadev Mon Aug 08, 2011 11:23 am

The good thing about market panics is that the market gives us a glimpse of it's hand (as in cards).

After the downgrade, the USD fell against most major currencies, excluding Euro and including Chinese Yuan. However, however, Indian Rupee fell!

Ok. Inspite of the huge delta in interest rates between India and US, INR fell. Inspite of the huge euphoria around the booming Indian economy and the dying American economy, the INR fell.

Currency market players are sophisticater than equity players. The long and short of it is that cracks are showing up in the India Booming euphoric rants. Caution is warranted.

by harharmahadev Mon Aug 08, 2011 11:56 am

Municipal bonds and bonds of various financial companies might be downgraded next. This could cause further weakness to equities. Eventually, it is going to be an incredible buying opportunity for the patient.

The baby is being thrown out with the bathwater.

by Propagandhi711 Mon Aug 08, 2011 12:11 pm

harharmahadev wrote:
Propagandhi711 wrote:BAC is down to near 2009 lows....I sold it at 14.95, phew. wondering if there's any benefit for setting limits to buy at 6ish or is it a falling knife?

There is a chance you could catch a bounce...but is it really worth it? There are so many good companies selling at a nice discount. Why bother messing with rabid dogs?

coz the 2009 memory of the bank stocks tripling in no time is still fresh in my brain. agree it's got a lot of problems but you never know when they decide it's still a large bank with prospects.

by harharmahadev Mon Aug 08, 2011 12:50 pm

Propagandhi711 wrote:
harharmahadev wrote:
Propagandhi711 wrote:BAC is down to near 2009 lows....I sold it at 14.95, phew. wondering if there's any benefit for setting limits to buy at 6ish or is it a falling knife?

There is a chance you could catch a bounce...but is it really worth it? There are so many good companies selling at a nice discount. Why bother messing with rabid dogs?

coz the 2009 memory of the bank stocks tripling in no time is still fresh in my brain. agree it's got a lot of problems but you never know when they decide it's still a large bank with prospects.

It's too soon to draw parallels. If the fed decides to do nothing (which is not outside the realm of possibilities, given the political and economic situation), then S&P could possibly see new lows, but I doubt if it would break the 2009 lows.

I think we need to wait and watch. I think we will get a window of opportunity to adjust positions.

by The Absolute Zero Mon Aug 08, 2011 1:14 pm

Wish this all goes to the bottom and the make the wall street guys beg on roads like dogs. The second fall should be for the health care industry. The so called specialists, nurses and all. The lawyers should sue them all and make them beg. Lawyers will beg anyway one day!

by Hellsangel Mon Aug 08, 2011 1:15 pm

The Absolute Zero wrote:Wish this all goes to the bottom and the make the wall street guys beg on roads like dogs. The second fall should be for the health care industry. The so called specialists, nurses and all. The lawyers should sue them all and make them beg. Lawyers will beg anyway one day!

You Holiness, when did you get so cold?

by The Absolute Zero Mon Aug 08, 2011 1:25 pm

Hellsangel wrote: You Holiness, when did you get so cold?

After I visited your house (Hell that is) :-)

by The Absolute Zero Mon Aug 08, 2011 1:30 pm

Propagandhi711 wrote:coz the 2009 memory of the bank stocks tripling in no time is still fresh in my brain. agree it's got a lot of problems but you never know when they decide it's still a large bank with prospects.

Be happy you are not played by another Ponzie Scheme guy. Those who went down with that guy now are doing odd jobs like TAXI service in FL for making ends meet. Someone in the Jail asked Ponzie guy, "Oh you are that guy? You stole millions?" He says "not millions, but billions."

Also told that he has no regrets. He has had a last laugh!! And He is in 70s. What if he got his jail now? He won't escape and live happily ever after, may be til 80+. And those who gave him the money, are now living a daily life in hell. Methinks for trusting that guy you deserve it. Me double happy if that investor is a physician or dentist or even a nurse.

by Propagandhi711 Mon Aug 08, 2011 1:36 pm

The Absolute Zero wrote:
Propagandhi711 wrote:coz the 2009 memory of the bank stocks tripling in no time is still fresh in my brain. agree it's got a lot of problems but you never know when they decide it's still a large bank with prospects.

Be happy you are not played by another Ponzie Scheme guy. Those who went down with that guy now are doing odd jobs like TAXI service in FL for making ends meet. Someone in the Jail asked Ponzie guy, "Oh you are that guy? You stole millions?" He says "not millions, but billions."

Also told that he has no regrets. He has had a last laugh!! And He is in 70s. What if he got his jail now? He won't escape and live happily ever after, may be til 80+. And those who gave him the money, are now living a daily life in hell. Methinks for trusting that guy you deserve it. Me double happy if that investor is a physician or dentist or even a nurse.

that's a fine rant, if a bit irrelevant. you and uppili must go to the same school.

by Marathadi-Saamiyaar Mon Aug 08, 2011 2:21 pm

Propagandhi711 wrote:[

that's a fine rant, if a bit irrelevant. you and uppili must go to the same school.[/quote]

Think DD - and think well.

Not the DD that you usually think about... Wink

by harharmahadev Mon Aug 08, 2011 4:07 pm

http://business.financialpost.com/2011/08/08/gold-may-hit-2500-in-2011-jp-morgan/

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