Time to short Stocks!

[Zander]

I have been in cash for the last year with no regrets. Now I think the topping process is done and we are set for a major decline in stock prices.

Today I bought shares of ProShares UltraShort S&P 500 ETF at $28.08.

Best of luck!

 

[Revere]

You think the Fed will stop giving free money to the banks to buy stocks and thus their bubble will burst soon?

 

[uscitizen]

Shorts stocks?

Fruit of the Loom or Hanes?

 

[Zander]

You think the Fed will stop giving free money to the banks to buy stocks and thus their bubble will burst soon?

One word.....DEFLATION.

 

[Revere]

I think after the election the government is going to stop bailing out everything and everyone, including the stock market.

 

[Toro]

I have been in cash for the last year with no regrets. Now I think the topping process is done and we are set for a major decline in stock prices.

Today I bought shares of ProShares UltraShort S&P 500 ETF at $28.08.

Best of luck!

What makes you think we're topping?

I don't think you're necessarily wrong. I'm sitting mainly in cash. But I don't see any topping going on. Maybe it will end tomorrow but right now I see a continued melt-up.

 

[Toro]

You think the Fed will stop giving free money to the banks to buy stocks and thus their bubble will burst soon?

One word.....DEFLATION.

Didn't you say that when gold was at $1000?

 

[Zander]

You think the Fed will stop giving free money to the banks to buy stocks and thus their bubble will burst soon?

One word.....DEFLATION.

Didn't you say that when gold was at $1000?

Not quite -but I was bearish at around $1150 and I am still bearish. Bubble anyone?

 

[Revere]

Obama will stop propping up the stock market after the election, which he has done by handing banks free money to buy stocks.

 

[Toro]

One word.....DEFLATION.

Didn't you say that when gold was at $1000?

Not quite -but I was bearish at around $1150 and I am still bearish. Bubble anyone?

That's coming.

But why do you think we're topping? I've been looking at my Bloomberg all afternoon, watching. I even put on a euro short, which would pay off if stocks did top. But it doesn't appear to be topping at all, at least not to me.

 

[Zander]

I have been in cash for the last year with no regrets. Now I think the topping process is done and we are set for a major decline in stock prices.

Today I bought shares of ProShares UltraShort S&P 500 ETF at $28.08.

Best of luck!

What makes you think we're topping?

I don't think you're necessarily wrong. I'm sitting mainly in cash. But I don't see any topping going on. Maybe it will end tomorrow but right now I see a continued melt-up.

Bullish sentiment for stocks hit 87% a on September 20th according to www.trade-futures.com

 

[Revere]

Obama will abandon any pretense of propping up markets when Republicans are in the majority and he can blame them.

Not to mention the chair that will get kicked out from underneath investment when taxes go up on 1/1/2011.

 

[uscitizen]

I will be selling some Eagles tomorrow, unless the seller wants to accept Eagles directly for payment? Perhaps he is a speculator and will give me a bit of a break for paying in gold?

 

[topspin]

a couple things, based on your posts your no where near smart enough to do this.

No regrets, shit I made 40% in the time span you were in cash. I'd regret the shit out of missing that.

 

[Douger]

I have been in cash for the last year with no regrets. Now I think the topping process is done and we are set for a major decline in stock prices.

Today I bought shares of ProShares UltraShort S&P 500 ETF at $28.08.

Best of luck!

Good choice on the ETF's.
Go check out iShares and look into some internationals.

iShares MSCI Chile Investable Market Index Fund (ECH): Performance - iShares

 

[Mad Scientist]

You think the Fed will stop giving free money to the banks to buy stocks and thus their bubble will burst soon?

One word.....DEFLATION.

How could we have deflation whe the Fed is all set to "monitize the debt" by printing more money? Seems we'd have inflation instead, as well as a extremely devalued dollar.

So it looks like gold is still the best investment for the time being right?

 

[Toro]

What's interesting is that government bonds have been selling off the past week. QE is all about monetizing government debt. Government bonds should be catching a bid, because it is they that are going to be purchased by the Fed, not stocks or bonds.

The QE playbook has been to buy bonds, stocks and gold while selling the dollar. A normal recovery playbook would be to buy stocks and the dollar and sell gold and bonds. Neither is happening. The only thing I can think of is that the market is now beginning to price in inflation, which is what would cause Tbonds to fall and everything else to rise. But corporate bonds should get hit too, and that's not happening.

The buying seems like a frenzied panic to the upside to me.

 

[editec]

You think the Fed will stop giving free money to the banks to buy stocks and thus their bubble will burst soon?

One word.....DEFLATION.

Didn't you say that when gold was at $1000?

Gold is rising, yes. That price is running on the fear (of future inflation)factor more than because of inflation.

But things of real value (like real estate) are continuing to price down.

The perceived losses in RE values far exceed the aggregate value of the rising prices of gold.

Yes, we are still in a period of deflation.

People still aren't spending. Sales are still down. They are attempting to jettison excessive debt.

Deflation is still the problem.

I don't know what it will take for this trend to reverse itself.

Some economics think another massive stimulus (hopefully one that is corrected targeted this time) might stem that tide.

I think the problems are more fundamental than that, alhtough I don't doubt it might help somewhat.

 

[Zander]

You think the Fed will stop giving free money to the banks to buy stocks and thus their bubble will burst soon?

One word.....DEFLATION.

How could we have deflation whe the Fed is all set to "monitize the debt" by printing more money? Seems we'd have inflation instead, as well as a extremely devalued dollar.

So it looks like gold is still the best investment for the time being right?

We have been experiencing deflation for the past year and a half. The Fed's QE efforts have not really stopped the falling prices as much as partially masked it - Just look at the prices of things in "ounces of gold" or the prices of real estate and you'll get the idea. That being said, I think that over the long term, owning some gold (5-10% of your portfolio) is a good idea. I am extremely bearish on stocks right now - and expect to see a sharp move downward over the next weeks and months. If I am right, I will make a great profit, but if I am wrong I only have a small portion of my portfolio in play - I am still 90% in cash and t-bills - so this is purely a speculation on my part. Best of luck!

 

[topspin]

we have had inflation, just lower than normal.
Your about to see what the fed can do to raise asset prices in about 2 years.