Wednesday, February 28, 2007

Beefer Panic Attack

Those non-believers in the concept of beefers got a dose of reality yesterday. The action sure seemed like a beefer panic attack. Those with profits panicked & sold indiscriminately. The bears pressed long suffering shorts. The excess of money in beefer trading funds has made the stock markets act more like commodity markets - wild, irrational swings. All the ETFs make shorting easy. Massive sums speculating via computer trading programs run on "automatic". Madness. All this reminds me of the line by C3PO in "Attack of the Clones" (from memory), "machines making machines ... madness".

I'll be looking to re-load stocks, gold & corn soon, but will wait to see what happens over the next couple days.


Bud said...

Interesting analysis Bunkerman. But completely 'irrational'. Are you aware of the difference in assets between hedge funds and mutual funds. Not even close. Irrational swings? The market is never wrong . It's a dynamic environment where prices keep changing as new data comes in every nanosecond.
Anyway kudos to you on a superb market call last week. Your posts was one of the reasons I went completely short a few days back. The CPI number, Mr G's recession comments, the breakdown in the brokers, and the charts in many momo stocks were the tells. Stick to market calls and don't waste your time with beefer fairy tales.

P.S. To thank you for your brilliant call I would like to give you as a gift Al Gores oscar winning movie on climate change "An Inconvenient Truth".

Bunkerman said...

ha ha Bud re the Gore movie. Have you ever heard the story of the discovery of the neutrino? It could not be observed at the time, but its existence was inferred from the need to conserve energy & momentum in nuclear collions. Eventually, techniques to observe it directly were developed and voila, it was as predicted. Current predictions of a universe filled with dark matter and dark energy are similar - necessary, but unseen directly.

Beefers exist & their irrational mood swings can dominate many short term market moves. Like the neutrino and dark matter & energy, one can predict and understand events better by accepting them and using their characterists to your advantage.

Thanks for the kudos on the selling. I'm always happy to help readers make money. My little birdie was talking to me.

Bunkerman said...

PS: good job on the shorts. I only got partially net short Monday AM before my trip in S&P futures. Covered last evening at 7:30PM. I'm in not hurry to reload either direction ... watching & waiting.

mern said...

yes excellent call K man.

yesterday was great to see, since im a perma bear.

im wondering if we sold off becuase they missed cheney?

imagine pelosi as VP. LOL

if it came to that, i suspect it wudnt be long before cindy sheehan strapped herself with bombs and ran onto a podium where bush was speaking and blew herself up, taking dubya with her.

then nancy, that pot smoking, acid taking grateful loving liberal wud be president.

WHAT A GREAT CALL LAST. u nailed the top.

i wonder if elmer has gotten a call from ben or george. not that i think he had much to do with china blowing up, but at the local pub (after i had them put cnbc on, and they all cud see the damage), the drunkards were blaming greenspan.

i still think we deserve a nice cleansing bear market, but im 100% cash right now, just waiting for some gud pitches.

yesterday was probably the worst day i can remember since 9/17/01.

breadth was 10 for 1 on the nazz

bud and the VIX r now dating, she finally hit 13, 16 and 18 all in the sameday.

i dont see how the fed can cut with inflation where it is and where its going (higher). so we go back to my stagflation theme.

like george stuck with jerk store, im sticking with my stagflation thesis till i see prices start to come down on anything except durable guds for the house, that i already have and dont need more of, like computers and tvs

Bunkerman said...

PPS: a big mutual fund with a high turnover can be a "beefer", Bud. I've generalized the concept. See my early posts indexed under "beefer". There is no "h" in Beefer" ;-)

Bud said...

Uh mern...........Dick Cheney is the most despicable disgusting horrendous vice president in US history. Imus calls him a war criminal and holds him responsible for the wrongful deaths of over 3000 GI's. And i agree. And so do the American people....Cheney has a job approval rating in the teens. Nancy Pelosi would be 1000x better for our country.