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Metamorphosis


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LEN and KBH were sold off a little last night after they reported blowout results.

 

Housing starts were down a little this morning.

 

The key today is to see where these two stocks trade.

 

If they pull off a QCOM, open down, then immediately start running to the upside, then you know that "the fix" is in for the housing market and that the homebuilders will be engaging in another run to new highs in a typical "ABC" up fashion.

 

That means LEN will be going to $100 and KBH will be going to $85.

 

................................

 

Gapping up of various speculative biotechs this morning means that Riverboating of small cap bios is now building up steam again, which means we are entering another "blowoff" stage of speculation.

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NASDAQ margin debt is out of control. From TribTabs:

 

"Margin debt surged five fold at Nasdaq member firms -- data not

included in NYSE margin debt -- $5.1 billion to $26.0 billion or 412%, from the

end of 2002 through July 2003"

 

"Margin debt at Nasdaq firms rose from $7.3 billion at the end

of May 2003 to $25.98 billion at the end of July. Margin debt at Nasdaq

firms is now 15% of total margin debt. At the end of March 2000, the

prior market peak, Nasdaq margin was just 7.1% of all margin debt."

 

 

 

The really good news, for bears, is yesterday the NASD issued a warning on the risks of trading on margin. These warnings usually proceed NASD requirements that member firms tighten margin requirements. The same events pricked the bubble in 2000.

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Comptroller for the good ol US of A was on Crapvision this am ...our fiscal disaster is uglier than any of us imagined...hypertigers DOR is getting closer...TRADE SAFE

I actually had crapvision on early and heard him. He is going to be giving a speech later today and I hope that I can find the text. The information is so shocking, that it is little wonder that he appeared before 7 am. :huh: :o :lol:

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yes same here, i was able to zoom in, but that was all.

 

I am happy to live in a country where we dont have such tornados and so on, it is really a mess what happens form time to time in the US, hope nobody gots hurt and that the damage will be repairable.

According to the logic of Wall Street, massive damage by tornados is bullish because fed will keep money loose, government will increase spending and destroyed home and properties will have to be re-built. They all are good for GDP.

Foreigners have goods ready in the pipeline for such an event. Looks bullish but for which side?

 

:D :D :D :D

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