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Boom, Recession, Stimulus, Boom, anything new?

Published on January 18, 2008

Boom, Recession, Stimulus, Boom, anything new?

January 18, 2008

US markets are heading downwards, probably one of the worst January month of stock market history. The head of the U.S. central bank says America’s economy is slowing and that a short-term economic stimulus package would be beneficial to spur growth and help avoid the risk of a recession. And President Bush thinking of package now. Thank you for accepting that Uncle Ben. By now trillions of “paper dollars” have already evaporated from the markets. Hello!!

Merrill Lynch reported billions of losses. I lost track of keeping the numbers with me. I am expecting about $250billions of losses and so far I think we have reached nearly $100 billions. Well it doesn’t really matter..the bottom line is that it’s not over yet. There are still more to come so enjoy the ride. I just hope that these stalwarts doesn’t take SWFs down with them else that will trigger another round of fears.

Booms, recessions then stimulus and then Booms again? Isn’t that a typical economic theory even the average Joe knows. is there anything new? I think this time is. I think differences this time are a) “We don’t know” the true extent of losses? and 2) “It’s smaller global village then it was ever before and if you track money flow, I am sure you will find yourself linked to what’s happening on the other part of the planet, 3) Information flow was never that rapid as now. It’s a wired world and if this bears becomes cruel, a lot is on stake.

I haven’t been posting for past few days as it was nice time enjoying with the bears. Writings were all over the wall. Though rapid fall took about 7% profits of my Jan’08 portfolio value but it was fun time with the big boys on the wall street i.e. MOS, SPY, EEM etc.

screenhunter_01-jan-18-1852.gif I am attaching a list of the companies that are on my watch-list. These are biggies who have been flying in vibrant colors just a few days ago and no body could dare to be bearish about them. With the stimulus package “interest” being announced today, expect a bounce. So those who are looking for intraday play, this list might get you started with some potential money making ideas. And better, today is an excellent day to make money (or vice versa) as it is the last day of Jan’08 expiration so there is hardly any time value left. Those who are registered on OPN, I shall send my personal preferences via e-mail.

BTW, for those who are not aware, OPN Waitlist is now open.

Have fun, bouncy day trading, OP

Disclaimer : Intraday trading is very risky and option trading involves risk, so pls do your due diligence before investing and it is assumed that you know and understand this is not a recommendation list.

2 Comments

  • Avatar David Tan says:

    Hi,

    no doubt, it is good news to hear that Bush is going to unveil his fiscal stimulus plan today, will it be another case of sell on the news again?

    My personal view on the US market is in really bad condition. If not, the US govt will not be stepping up effort to rescue it.

    Food for thought……

    David Tan

  • Avatar OptionPundit says:

    yes, I expect it to be another dead-cat bounce. Bear market rallies are very cruel btw.

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