Stompin' at the Savoy

The beefer traders seem to be partying bigtime with Ms. Market with their stomping tactics, swinging her around in a wild jitterbug. "Stompin' at the Savoy" was a great 1934-36 era Jazz song first popularized by Chick Webb and later Benny Goodman. The Savoy Ballroom was a large 10,000 sq. foot dance floor in Harlem in New York City where many great jazz tunes & great performers were showcased [ see http://www.jazzstandards.com/Test/stompinatthesavoy.htm ].

They are really enjoying the wild life without the Puritanical uptick rule. For a third day they shorted like a sailor on leave drinks, trying to push the markets down and perhaps create a breakdown and panic. But it failed again and they had to cover. By the close stocks were mostly unchanged except some sectors under recycling selling like the Nazz 100.

An AIG rumor caused some panic, but it was denied. I don't like AIG and don't trust them, so think there might be something smoldering there. I shorted a bit - not a lot - and will keep it until they report earnings. I also added to BAC, C and WB and started a position in CFC.

Oil is now at $92. Coal producer BTU is back to its recent highs at $55. I have a good bit of that for the long term.

I don't see anything new. The housing overcapacity will be worked off over a year. Markets will start to see that soon and then react up for a new bull leg. Market do anticipate events. I've lived through a housing downturn in the late 1980s. It has zero affect on almost all people who own homes as they never got the money from the paper gains and simply don't sell. If they do sell, they re-buy a home elsewhere for a net zero effect. Recent buyers who overleveraged can be hurt, as are speculators. Lenders can get hurt. That's it, though.

Gold is at $780; silver is over $14. I think physical demand of both is creating a long term bull market in my view. Big swings occur as beefers make dollar related trades, but the trend is up. I have big positions in both in the Krypto Fund - 10% of my invested assets.

PS: CFC reported good numbers and guidance so the stock is up $3 premarket. Out of respect for the trading gods, I flipped my position. I am sure I would be punished severely if I held long term. I also covered the AIG short - I just don't feel like playing that game now.