Wave Chasing

European markets got POUNDED on fears of recession in the US economy.

Now that we’re screwing up other countries markets, I cannot think of a better reason to bring forth the “substantive additional action” that has been promised by the Fed. Lord knows if I were in London, I would be seriously pissed off at the lack of Fed intervention that has caused my market to drop over 5% in a day. (Or over 7% in Germany.) US futures are very, very red today.

The time to take action has long since passed, but it is not too late to at least get started getting this mess fixed. We need to show the world that we’re not going to hang them all out to dry. The timing is perfect – emergency teleconference today or tonight, then a pre-market announcement tomorrow.

50 points tomorrow morning, 50 at the meeting.

It would be a start.

What I am more concerned about is continued silence on the part of the Fed. They would prefer to see domestic and global markets crash than actually do something because it might look like they are bailing out Wall Street. Very, very shortsighted as far as I am concerned.

I guess we’ll know tomorrow.

143 point selloff in the Dow today. A should-have-been-expected takeback over the “overbought” conditions of the previous few days. Question is – was it enough to put us into some semblance of equilibrium or do we have more selling tomorrow?

Nikkei is down 1% at the open. It doesn’t feel like we ever have just one down day.

So, I’m ready for more selling tomorrow. Won’t be upset if I’m wrong, but it’s better to be mentally ready for everything to go to shit.

Asia is all green. So, given how great I’ve been lately with predictions, I’m betting on another 200 down day. ;)

Make that down 2.8% on the Nikkei…found an updated quote.

So, the Nikkei is still holding at down 2.5% at this point*, which I guess is better than being down by 3%, right?

I’m prepped for another down day tomorrow – if the EIA or mortgage survey numbers give anyone even the slightest cause for pause, we’re gonna see more selling – we tend to not get it out of our system in a day of late, and the light volume just makes things move more than they should.

Damn, I want to be wrong, and I would LOVE to be wrong, but I’m ready for more red.

Couple potential 3×2 trades tomorrow if I roll out of anything else and the markets aren’t absolutely ridiculous. PRM is also going ex-div on a special tomorrow as well and I’ve got my eye on that as well.

I’ve only got one holding that is really giving me some grief, and that is VFC. It goes down on any and all news, and doesn’t seem to be able to fight the tape at all. I’m still thinking back to school will be good for them – lord knows I buy a ton of their products between the North Face & Lucy brands. I’m not ready to dump it yet – I think once things turn a little overall and back to school numbers start coming in, I think there will be some strength in it again.

Guess we’ll see, won’t we?

*Well, as of 10:30 – Yahoo’s feed of it isn’t updating anymore for some reason.

Nikkei gapped down 1.5% at the open and has already slid to 2.66% down – reaction or prediction?

Mildly annoying.