September Stock Talk IV

Your right Clay, S&P is taking a huge beat down today. 

They opened at 1,209, now down to 1,163

Looks like the market doesnt like the terms of this deal.

Bot more DRYS today, about 300 shares or so around 35.65 (two orders at different prices)

For whatever it is worth, got this in the inbox today. The meltdown is truly global and the notion that the BRICs would save the world economy is not being borne out..

Chart Analysis confirms that a strong downtrend is in place and that the market remains negative longer term. Strong Downtrend with money management stops. A triangle indicates the presence of a very strong trend that is being driven by strong forces and insiders.

Based on a pre-defined weighted trend formula for chart analysis, DRYS scored -100 on a scale from -100 (strong downtrend) to +100 (strong uptrend):

 Vermeer,

Oh no doubt.. DRYS has been decimated from a chartist POV..no question.

The business on the other hand is not decimated, that is why I keep buying..

Let us hope the adage that the market can stay irrational longer than one can stay solvent does not apply here.However, there is absolutely nothing that I have seen that alleviates my bearishness, and indeed, every time I see Frank and Schumer on TV I get even more bearish for the world economy, not just our own.

 From a commentator...

Once again, in a repetition of the Enron fiasco, the SEC adhered to its unofficial policy that it will work on big frauds at small companies, little frauds at big companies, but never big frauds at big companies.  Former SEC investigator Gary Aguirre was fired in 2005  because he wanted to depose Morgan Stanley big-wig John Mack.  Not that anyone was surprised.  SEC executives move back and forth from high paid jobs on Wall Street.  Their world view is grossly distorted, if not corrupt.  After reading the Inspector General's Audit from September 26th, about SEC lapses with Bear Stearns, the Chairman of the SEC said, "The last six months have made it abundantly clear that voluntary regulation does not work."  Did he sleep all the way through Enron, Worldcom and Global Crossing?

An executive at a Financial company has nothing to gain and everything to lose through bankruptcy.  Richard Fuld earns about $3 million a month.  Why would he admit bankruptcy if he didn't have to?  Why would anyone in his shoes voluntarily give up that kind of money?  What one can't understand is why the SEC allowed him to bet his pay-check against our economic health.  By letting things get so bad that the SEC would have to ban short-selling, the SEC allowed Fuld, and many others, to walk away with maximum compensation.  But the short-seller who bets with their pocket book goes away empty handed.  How can capitilism succeed if the guys who are right don't get paid and the guys who are wrong do?

Blind-sided by the abrupt SEC action, Amex had to suspend trading on SKF while they sorted through the implications.  Though trading resumed in the afternoon the NAV ended at a market-stressed value of $85.95, which put the share price about a 17% above the NAV. 

The SEC had created panic among ETF investors. A sample of trader chatter on the Elitetrader forum, "I just spoke with my firm's tech support. SKF was halted....and whether they break or not the trade after the halt is all up to NASD. I hope it breaks... what do they usually do in circumstances like this?...ProShares telephones are off the hook...won't this paralyze the derivatives market?...Yep, and it will undoubtedly raise the cost of 'hedging'...The SKF folks use counter-parties with swaps in order to construct the SKF...These swaps just went WAY UP in price ( with the counter-party ) because of the inability to short the financials and this is what the freaking Govt. has no clue about."

The bottom line is that through SKF the ETF investors have been right from the beginning.  The SEC brutishly silenced the shorts, but history will show that is was the SEC, not the short-sellers, that created fear in the markets.  If the SEC had stood up to those large companies last year we'd be in a mess, but not a panic. 

Panic trading

The VIX is up 9pts to around the 43-44 level

Panic trading defined

DOW down 500.

Oil down 8 percent.

We could see sub 10k this week.

They keep spiking it down more and more.

Are there curbs in?

GOOG down 41 pts

AAPL down 23

CNQ down 12

FSLR down 28

On my 20 stock screen I have down percentages between 5 and 18 percent.

Oh and look at the financials.

If they didnt have the short rule in place, these suckers would be decimated and instead all the other stocks are getting sucker punched and the financials are not nearly as down.

VIX briefly through 45

VIX touching 46 now

They just reopened WB into this mess?

Program trading turned off for the balance of the day and the market bounced 150 quick.

hey wall, who has the power to shut down program trading?

The exchanges do..usually there are levels in which it turns on and off, but the exchange can do it manually.     

wallstreet what should I do with my money

woop,

I would need to know more about your situation.

There are some great minds here, always happy to assist.