Crazy Town Thoughts
...bottoms are formed when people who thought they could ride it out call their brokers and dump everything.
Fresh thoughts from just outside the make-up room at CNBC Global...
- Moody's sees the possibility of "Major Hedge Fund Collapse." For those who've been vacationing all summer, the frightening thing about the headline isn't the collapse but rather Moody's use of the singular "Hedge Fund".
- When a crowded trading strategy starts failing there's only logical trade for the non-afflicted traders: take the other side. From where I'm sitting, that's why Goldman's (GS) funds are toast, why the selling keeps building generally and why the Yen is moving so violently (to use one oft-mentioned unwind example).
- "Going where the crowd isn't" is a better constructive strategy then hunting for a bottom in financials but the selling figures to find everything, in time. Even stuff like Intel (INTC), which is a non-quant stock and one I still own. I like it long-term but it's not a hiding place.
- The reason I keep saying "sell until you can sleep" on the Tee Vee isn't because it's catch-phrasish (it's actually kind of hard to say). I'm saying it because bottoms are formed when people who thought they could ride it out call their brokers and dump everything. Every experienced trader has helped form a v-bottom... it's "Unpleasant", to say the very least.
- In response to two common questions: "I'm doing both shows all week" and "Yes, I've met her... she's nice and quite lovely."
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