Wednesday, September 24, 2008

State of the Market - 9/24/08

Another boring day on Wall Street as the market continues to be held hostage by the discussion in Washington in regards to the big bailout. The market bounced around in a fairly tight range for most of the day until the end when stocks did break through earlier support, but the losses were still only marginal and they did bounce back at the close. Right now, there continues to be no reason to trade and that's why I am doing.

Whenever this thing gets resolved, I would imagine there will be quite a large move one way or the other. I don't have any idea which way it will be, but I will try to be ready. If we head lower it is still so hard to short right now thanks to your friendly federal government that any accompanying trades would be virtually useless. Somehow IBM got added to the no-short list today. That makes a lot of sense, doesn't it?? As I read on a message board today, why don't they just ban all shorting and get it over with already.

Don't have much else to say today - things haven't changed and may not change for a while. I am at least encouraged as an American that this is taking a while and our representatives are at least on the surface using common sense for once by taking their time with this request. They are not just giving in and doing whatever Paulson wants. It seems like they are actually listening to their constituents for once. We'll see how long that lasts, but at least it is encouraging for now. If this passes, let's hope at least some things are added (that I mentioned last night) to make it a little fairer for people like myself, who lived within their means the past ten years, still owns the same house I bought ten years ago even though it is a little too small for my growing family, and did not cause any of these massive problems.

Good luck Thursday - hopefully you are sitting this period out. You can still be ready, but waiting for the right time is important in trading. Now is not the right time.


Anonymous said...

stop waiting and buy GS follow Buffet step.

Mac said...

Be my guest - not my cup of tea. If we do somehow bottom here, I don't see that as a stock that will make a 50-100% or higher move. Maybe it will, and if it does, more power to you. I see an ugly chart in a risky business.