May see euqities try to rally late Monday after Asia & Europe do their round of selling US stocks in the am. But I see continued weakness through the week absent of any positive econ./corp. news. And IMHO you will not see any next week. Retail sector got pounded last week and their press releases should continue to suggest that the US consumer is worried and not spending. Still holding my SDS.
minutes. Can't predict individual sessions in advance. But, what the hell, since picking numbers out of hat is in vogue, I'll go out on a limb. By the close on Tuesday, the S&P will have sliced through 1406 like a hot knife through butter. I don't see 1380 as anything special. I see the downside slowing in around 1359-1360. Ultimately, two weeks or two months or mid-July, its waaaay below that.
Wonder when LEH is gonna get honest? Kinda quiet over there. Are they GS, or just another bozo bond outfit chock a block with mortgage-backed paper? How long will it take Buffet to move into muni bond financing? Will any of the current guarantor outfits still be in business since Buffet don't want 'em?
What happens when BSC and MER go belly up? By "belly up" I don't mean bankrupt. I mean below the levels that are specified as triggers for forced conversion into common stock within all of these structured vehicles that the brokerage houses are attempting to foist on the public? That'll be fun.
And so, what do we do when the short squeeze arises?
We laugh like hell, and consider adding to short positions, that's what we do. I'll take SDS all day long under $53.50. Good luck, R