Wednesday, October 1, 2008

Not Out of the Woods Yet, but Certainly Near Town

The VIX has retreated from historic highs back into the "less jittery": <40's. Pretty frightening stuff for everyone I assume.

Some of us enjoy good times when the volatility spikes and the markets jerk from up 300 to down, and so try not to be levered to one side more than the other. I have become a structural bull since bernanke showed his willingness to support credit markets, but we may go down more or at least not go up much while the fed pumps several more injections into money markets. After a lot of liquidity is forced in, the banks will return slowly to their chief pursuit of borrowing short/lending long. This is when the bulls will eat good again

In the mean time don't be greedy and try to be a trader if you are a trader. no one ever went poor taking profits. buy on fast dips, sell on fast rips if its not illegal (short selling ban extended!).

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