A good start to the week as markets starting to collapse and finally discounting the stimulus package for what it is, niente. Keep the shorts on SRS BGZ unfortunately I took half off last week as I thought the dogs might chew on the bone for awhile and buy on the bank bailout but as soon as that fell apart the shorts came rushing back in like an 18yo at his first ever lap dance.
This could be it cowboys and cowgirls, not a lot of reasons to be long now, macro view will worsen and company reports will miss more than they hit so the news flow has to continue to put downward pressure on this market. Remember keep it simple keep your ideas simple and be ready to move with the market. Forget companies surviving the issue is countries, how can emerging markets and better still Eastern European countries full of debt with no real means to raise capital other than via a defunct IMF survive this crisis. This is still to be factored in, USA is very lucky to be able to raise cash with a strong currency (it better hold for their sake and the ROW) but a lot of other countries will have massive davaluation of currencies a run on their financial system to gain even more momentum, possible war but definately riots, crime and general civil unrest. This is how humans respond in these situations. Obviously I HOPE this does not occur but I have never made money on HOPE only facts and simple ideas.
Pick4 system worked a treat on the weekend netting over 7,000 for under a 120 and 70 dollar investment, but it still needs tweaking before running on ALL american tracks, I will write a book on this model.
Giddy Up
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