Market Fundamentals... Lack of Liquidity
#1
Posted 20 August 2007 - 08:55 PM
Richard Wyckoff - "Whenever you find hope or fear warping judgment, close out your position"
Volume is the only vote that matters... the ultimate sentiment poll.
http://twitter.com/VolumeDynamics http://parler.com/Volumedynamics
#2
Posted 20 August 2007 - 09:11 PM
That's one good reason these stocks are going to go nowhere... There was incredible speculation at the top especially just before the market crashed... there were insane premiums being paid on rumors... all that speculation is Over !!
No liquidity is right, but just wait until the LBOs start falling apart
#3
Posted 20 August 2007 - 09:14 PM
That's one good reason these stocks are going to go nowhere... There was incredible speculation at the top especially just before the market crashed... there were insane premiums being paid on rumors... all that speculation is Over !!
No liquidity is right, but just wait until the LBOs start falling apart
That's what I am waiting for, I am also waiting for housing price to drop like a rock and consumer spending to go down. shorting the market 100% comfortably.
Edited by CNSZ, 20 August 2007 - 09:15 PM.
#4
Posted 20 August 2007 - 09:36 PM
#5
Posted 20 August 2007 - 10:52 PM
#6
Posted 21 August 2007 - 04:01 AM
#7
Posted 21 August 2007 - 07:07 AM
"Lots of dirt-cheap money, spreading it around willy-nilly, no worries".
"There's money around, but it's not dirt-cheap". ie, You can still get a jumbo loan if highly qualified, but the interest rate has gone up.
"There's money around, but nobody's willing to pay for what is potentially a CRAP asset that can't be valued properly." If this is what we have now in part of the mortgatge market, all the liquidity injections and rate cuts won't help the mortgage market much if at all. (However if they keep trying to liquify the system and cut rates, that money will find its way into other assets... like stocks. And if the stock market is going up, we'll dismiss the mortgage mess as "no big deal".)
#8
Posted 21 August 2007 - 08:21 AM