The video clip of Jim Cramer ranting and raving about the credit squeeze stirred up huge interest in the financial world. And, true to the fast-moving pace of events, Hoofy the Bull and Boo the Bear did not waste any time hooking up to the action and giving meaning to the term “market meltdown”.
I hope this spoof lightens up this rather grim moment as panic selling starts dominating market action all around the world. The problem is not going to be resolved in a matter of days and a speedy turnaround is not imminent – therefore enjoy a few minutes of the funny side of an otherwise serious matter. Source: http://www.minyanville.com/mvtv/?videoid=22
3 comments to Crashing stock markets – Hoofy & Boo causing a laugh
Cra$$$h! by Tim Id
When markets go plunging and boiling, It seems that there’s no use in toiling. While it’s hard to win, Just hold on to your grin, And pretend that your trousers aren’t soiling!
I wont waste my time watching a clip of Cramer, but regarding the Market Crashing, I have a few thoughts. We are in the 3rd of the 3rd in many indices, where the likelihood of a Crash is high. There is no turning back from here, minimum downside is 30%
August 16, 2007
The Final Blow-Off
The rally we’ve been expecting finally began on Thursday, August 16th. On Friday 17th it should culminate in the final blow-off. By the close of Friday, make sure you are fully positioned for a dramatic reversal. On Monday, August 20, we begin accelerating down, likely going into going into free fall and culminating in a CRASH.
The great psychoanalyst, Sigmund Freud, developed a bimodal construct to describe the mind sets of individuals who were in the normal pursuit of their lives. He used the term, Eros, to represent the attitude of persons who were optimistic, constructive, and seekers of order. On the opposing end of the continuum, he classified those folks who were pessimistic, destructive, and seekers of chaos as dewlling in the mental state of Thanatos. This construct is often useful when considering the endless stream of comments being made about the ever changing condition of financial markets.
Commentators characterized by Eros are perpetually bullish, while the perma-bears are denizens of Thanatos. It is very easy to recognize individuals from each of these camps. However, it is generally more useful and profitable to maintain a viewpoint somewhere between these two extremes.
One way to develop a balanced approach is to keep a eye on the market’s primary trend, as per the time-tested, Dow Theory. In a modified version, employing econometric techniques on the SPX, COMPQ, INDU, TRAN, and UTIL, the primary trend is close to being in jeopardy, but is still intact. Markets often correct, and at this point, correction is what we have.
Downside price objectives for the SPX calculated from a 2 box, 1% point and figure chart, are 1374 (based on May-Jul), 1308 (based on Aug), and 1082 (Based on Feb-Aug). The 1374 objective was attained yeaterday, when the index briefly touched 1370. After a dramatic, end-of-day rally, the index is struggling to regain its 200 day moving average. Sometime soon, a test of the low at 1370 should occur. Should this low be broken by two days’ closes, then the primary trend will have to be reassessed as being definitely downward.
Although the world markets are poised for an apparent collapse, I seem to recall that they were likewise poised in the 60s, 70s, 80s, 90s, and now 00s. The appropriate technique for primary trend traders in today’s markets would have been to short the index after the bull trap in July, and again in August; to go long on the index when the market approached the P&L price target, yesterday, and to close out the longs near the 200 day average. When the range narrows, volume drys up, and overbought indicators suggest that the test of low is imminent, then more shorts are in order. While all of this is going on, one’s larger portfolio should remain long, with an eye for major adjustment upon a significant break of yesterday’s low. Much like the “old turkey” in “Reminiscences of a Stock Operator,” we do not want to “lose our position,” and be whipsawed by the merciless, tidal, cross currents.
“PRIMARY TREND FOLLIES” by Miss Dee Target
Whenever you’re trading the markets, The white noise will drive you insane! But worse are the squeals of the lemmings — So persistent and strong, but inane!