What Would Joseph P. Kennedy Sr. Do?

Navigating the coming collapse for big financial gains!!!

Tuesday, August 09, 2005

Green Light?

With more of the same out of the FOMC today, I'm beginning to wonder if Liquidity-G has just handed Wall Street a blank check throughout the remainder of the year.

Death by one thousand cuts.. but just enough breathing room to leverage the years ending in five phenomena?

I was expecting Old Alan to dump some water on the fire by removing the measured pace words, or at least put more emphasis on the mounting inflationary pressures (energy, unit-labor costs).

Sellers need to hold the highs on the NDX and, perhaps more importantly, the DOW, or my collapse countdown is likely pushed further out.

Will I be forced to change the title of the blog to What Would Steve Harmon Do? I certainly hope not.

Remember, Greenspan was handed the October 1987 crash just two months after taking the Fed Chairman job (Thursday of this week will mark Greenspan's 18th year as Federal Reserve Governor). Will his likely successor endure the same fate or will Greenspan bookend his legacy with crashes?

In the interim, I'm trying to find the right layout for this blog as well as becoming accustomed to logging my thoughts via this medium. Please bare with me for a while-- as I intend to turn this blog into something extraordinary.




Blogger The Dismal Speculator said...

Thank you energy market !

I was expecting this collapse YESTERDAY.

Instead we received scenario #2 of my three possible outcomes to the FOMC:

1. A big down day.

2. A mixed response.

3. A big up day.

Number 3 would have probably forced my out of my puts. Since we didn't get it, I decided to sit on my hands.

Anyhow, when they couldn't crack 1615.5 on the NQ, I started doing some math and realized a 2% range from that level projects to 1586; which translates to NDX 1580.. which is so close to my number 1577. I loaded the boat with August $39 puts @ 0.15 and partially hedged my bet with some NQ long.

This market is in big trouble. Maybe we celebrate Greenspans 18th anniversary by finally responding to his easy money policy.. and REALLY kick off the super spike in oil.

10/8/05 12:30 PM  

Post a Comment

<< Home