Tuesday, May 15, 2012
In Deep Trouble
We are on the edge of the final cliff dive. We've been rolling down gently but that is unsustainable. The markets are now built for quick panic declines with markets moving based on headlines. This also means that we're probably going to bounce right back after the panic. I am looking at the Spain 10 year yields and it reached new 2012 highs, although still well below 2011 highs. I was premature on the Europe bottom call, the economy in the Eurozone is so weak that a bottom is elusive. I am expecting a very weak 2nd half for today and we should plunge down to new lows. Expect a volatility spike soon.
Subscribe to:
Post Comments (Atom)
Posts
5 comments:
For you FB fans:
WSJ headlines crossing saying GM is pulling adds from Facebook as they are being viewed as ineffective.
it is funny that GS&JPM are still green..
Owl-just to be clear. If you could purchase shares in FB @ there offering price and sell Fri you wouldn't?/
Or do you think they will rocket Fridy.
And nice call today on the market.
Not sure i see a big rally though.
Of course I would flip FB if I could get shares at the offering price and dump it on Friday. But most people won't be able to get shares and will have to decide whether to buy at the traded prices on Friday. And there is no way I would buy at those inflated prices. And I think FB will likely trend down from their Friday trading prices for the next couple of weeks.
Looks like tomorrow will be capitulation day, I am looking to buy a deep selloff intraday if we get it. Otherwise on the sidelines.
Post a Comment