GET SHORTY, LOSE YOUR ASS TODAY:
It's unfair. Do people even realize we have stocks trading at 2x forward numbers that are growing 50%? So basically investors don't believe in the numbers. Fine. I buy that. So lets say 50% is 25% instead. TWO TIMES FORWARD NUMBERS???
As Phil Leotardo said, cooler heads must prevail here. Monetary base has and will keep expanding, but confidence is terrible. Good thing about confidence: it changes. Banks need to lend the money that has been added to the system, and when that happens we are going to have one of the biggest rallies anyone on this planet has lived through, dot-com days not-withstanding of course.
I'm not Mr. Bullish. I've been Mr. Bearish for the better part of the last 14 months (Aug 07.) But now we are getting close to so many things happening that will take us higher. Meanwhile, people are salivating for the short ban to come off tonight to get short. What happens when they all lean the wrong way at the same time? KABOOM, melt-up.
Not saying its gonna happen today, or tomorrow, or that Dow 7K is out of the question. But I am saying I remember in 2002 when Bill Gross started calling for Down 6,000 and we thought CEO's were all crooked and SarBox sign-offs would highlight this and we knew CSCO could never have another good quarter. What happened 3 months later? Cisco was up 50% without reporting a single good quarter. And the braniacs couldn't figure out why.
Here is why: SUPPLY AND DEMAND. Once we get through this supply digestion and the confidence brings back demand (and by the way, confidence, which remained positive through 80% of this 14 month sell off, does turn on a dime and usually just in time to exponentially accelerate a move in either direction, will show up late to the up move and squeeze mcshorty even more) and corporate buybacks kick in and take yet more supply out of the market, you get a market that goes higher, quickly.
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