Thursday, August 12, 2010

Waiting ...

Krypto is waiting, but is considering selling TIPs to take that allocation down to 5%. Procceds would go to cash, then stocks once this beefer selling subsides.

The beefers decided to sell yesterday. Why ?

The Fed ? Nope, that just confirmed the obvious, that US economic growth was sluggish.

Unemployment claims numbers have been showing that for many weeks.

The Fed policy change ? Nope, that's a positive, as mortgage refinancing would have severely and quickly contracted the monetary bases from mortgage prepayments. Also, the drop in Treasuries is good. The window for corporations and homeowners to lock in lifetime low interest rates for long term financing is now a big, broad bay window, as wide as a barn door.

These actions will create a strong foundation for a huge new bull market in a couple years, led by the big caps.

So Why ?

Because beefers simply act like a herd now. Some start selling and the quants hop onto the trend. And no real buyers exists at these moderate, middling levels. Heck, almost no real buyers exist anymore anywhere. The Street and beefers and computer traders have driven them all away. It has become pointless to follow market action - all is now simply the transient fluctuations - often large - of beefer funds running computer trading models.

Patient real buyers like Krypto simply sit and wait for lower prices. Then we buy.

Word of the Day

"Ophidian" - noun & adjective [$10]
Ophidian means (noun) a reptile of the suborder Serpentes (formerly Ophidian) comprising snakes; (adjective) 1. of or relating to this suborder; 2. snakelike.
Sentence: The DC Ruling Class has a predominantly ophidian character: they slither and steal and tempt unwary voters with corrupt apples. Boss Ophidian = Barack Obama.


Bunkerman said...

I was at the MG range yesterday, practicing, hence no replies to comments. Sorry.

Bunkerman said...

I await the weekly unemployment claims number with resignation that another poor number is quite likely.

Bunkerman said...

Initial jobless claims for the week ended August 7 totaled 484,000, which is more than the 465,000 claims that had been widely expected. It also marks the highest initial claims count since February. Figures for the prior week were revised slightly higher to reflect 482,000 initial claims.

More poor performance from the P-O-R "leadership" team in DC.


Frosty said...

another day another permabear rant...come on....thought you were the ultimate pirahna.

Frosty said...

hey where is Sal....smokin POT.

Bunkerman said...

Krypto is waiting for some cheap stocks.

Have Cash, Will Invest.

Bud said...

well well well

the ponce finally delivers.............and not just for the queens in the west village

private email POT

' helluva call bob '

Bud said...

Bman do you think the Euro is a short ?? what does your dog think ? lassie or whatever his name is

Bunkerman said...

No opinion on Euro.

Frosty said...

what do ya call 7 million pakis caught in a flood...a good start.

Bud said...

what do you call someone that lives in oregon..............a fag

Bud said...

didn't think it was funny frosty ??? i don't care................i think that was hilarious