Wednesday, September 26, 2007

The Beginning of the End

I think the economy has now moved beyond the "end of the beginning" of the Rich Man's Panic of 2007 to the "Beginning of the End."

The Fed did what it needed to do, to redress its mistake in not stopping at 5% in May 2006 and not cutting earlier this summer.

The vultures are raising big money to buy foreclosed homes at bargains. This will re-price housing in many speculative neighborhoods in California, Nevada, Florida and other places. That's how the commercial real estate recession of the early 1990s was cleared. Lenders should renegotiate loans to reduce their losses. Will they be that smart? Maybe, there is talk about that.

Per a recent WSJ, the peak in home mortgage ARM resets is on us. They fall in coming months.

Talk on Babblevision about "Asian decoupling" from the US is correct. I've need writing about the new "Asian Co-Prosperity Zone" for many months - years actually. It's becoming more and more evident. Self-reinforcing consumer and business demand can drive that zone much, much higher and the world economy, too. Exports to the US sparked it, no doubt. But the follow-thru is now intra-zone trade.

The GM strike is over. Futures are up. The markets were up on bad retail news yesterday. The Charts look fine - the Nazz 100 printed a second close over the old high, confirming the move.

It's a bull market. Buy dips.

31 comments:

  1. solar them hitting good aheah and after oil data....oil going lower, 70 anyone? who needs solar.

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  2. Bud...sorry...shoritng solar...just to be clear.

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  3. I screwed up those solars back in April/May. Si got me in them, and I sold as I didn't understand them too well & had other stocks to buy. Bad mistake. They were JASO, FSLR, TSL and another one I can't remember.

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  4. also...took some double juice index darksiders...we need a rest at a minimum...paint job done.

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  5. fins seeing a little play... still looking for some rotation into fins this week to hold the spy as buying slacks in beta...so far that has caused some pain, getting in front of the chicoms and solars yesterday and today...I tend to trade my plan and half way through the week I suck.

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  6. that plan included DUG heffernan...out of oil a key.

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  7. Bunkerman...where are all your friends today...did I run them off.

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  8. I don't know, frosty.

    There seems to be an odd mix of movers today. Maybe that rotational paint play you mentioned is going on.

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  9. AA did the gaperoo today.I wonder if new takeover rumors are out?

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  10. Bunkerman...deals getting done, see nothing AA specific...that must be it though, durable goods data very poor.

    Bunkerman...sure feels like rotational paint trade kicking in...beefers have no shame...the common man has no chance.

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  11. especially now with no uptick rule. It's open season on public stops nowadays.

    Buy & hold for strong groups & stocks still works, though. Beefer games can give good dip buy entries if one is patient.

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  12. Frosty what the heck are you talkin about?

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  13. I shorted LDK and YGE. Stupid. But i'm lookin for a trade. Beefer-ish.

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  14. Yeah frsoty you did run everybody away. Also prolly Bman and his nonsense about beefers.

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  15. Lmaoooooooooo uptick rule open season

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  16. I'm having computer problems out the wazooo...

    die yankees die!

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  17. Bman if you are such an advocate of the common man.......why are you in favor of more regulations in the markets. Dont the laws and regulations hurt only 'honest' people. Isn't that what you always say? Big bad beefers are always gonna circumvent the law. Your words...not mine.

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  18. Dark meat tastes good this afternoon.

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  19. The common man needs some protection against the big thieves. Too bad the SEC is on the side of the big firms and beefers with the well paid mouthpieces.

    The common man has no one. We need a 21st century Teddy Roosevelt to smash the beefer money trusts haha !

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  20. there must be two bud's or one is schizo - how can a hildog groupie talk like a libertarian?

    Maybe bud's password got hacked?

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  21. BCS...how strange that the pig of fins is turning them around...short SKF another key to this weeks plan.

    Bunkerman...beefer paint rotation indeed.

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  22. now the beefers can sell the tech solar to common man take down the fins to hold up the spy. we need some regulation to stop this maddness.

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  23. think about Bunkerman...if these things were not allowed Bud would need to get a job....a dilbert character indeed...can you imagine.

    LMAOOOOOOO

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  24. CSCO breaking out of the recent C&H / ascending triangle

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  25. thanks again for that one, frosty. 10% in six weeks - not shabby for a big position.

    Dip buyers rule :-))

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  26. Time for a single malt. I've been trying a new one every day. I even have a special "Glencairn" glass to sniff, observe & taste it.

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  27. Bunkerman...you traded your plan, no one can take credit for that...a real player would have given you RIMM....enjoy the fire water and thank you for allowing me in your house.

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  28. Bunkerman...notice at the bottom CFC was going bankrupt, even BSC and BCS rumors...the carry trade would fuel the decline futher etc... we loaded CSCO...now the coin is coming up heads ever time...hence my thought on the VIX calls to hedge your 150% alpha...today deal rumors save a certain poor close, see the tea leafs...all news is good news.

    One more thing, stop sticking your finger in the bears eye...CSCO goes to 35, but one more pump and I sell the rest :)

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  29. I knock on wood every time, frosty. But one has to humbly point out good moves or the inexperienced reader won't know what's working. They do exist, if quiet publicly.

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  30. I think the trading gods do not get angry if one points out success humbly with respect and without hubris.

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