Market on the Rebound?
Posted: March 7th, 2008 | Author: Stock Pitcher | Filed under: Market Talk | No Comments »It looks like the market will rebound today as I expected. I cut all my shorts yesterday which was one day too early but profit is profit. Sometimes I’m a little hard on myself for even missing a dollar of profit but as you get more experienced, you learn to live with your wins and not regret your missed opportunities because every day that the market is open, there will be plenty of opportunities. There is no lack of opportunities but there is sometimes the lack of execution. It’s better to execute less than to execute wrong.
I expect the market to have a short term bounce next week as the investment firms will deliver surprising earnings based on lowered expectations and of course, the fed will definitely cut the 75 basis points instead of the already expect 50 basis points to prop up the market. The market will jump once again on these renewed hopes. However even through all this our basic market situation is not solve as mortgages will still crumble and will trickle to other sectors such as commericial real estate, lower business spending, lower consumer spending and some job losses. It’s just what has to happen for the market to shake out the economically weak. It’s financial evolution. So I’m on the look out for a bounce on the short term and is long FCX and NMX (NMX for the buyout hopes – yes merger arbitrage is a horrible idea but I’ll stand by this one).
