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  • Report from Europe: Trade Wars are Never Good News for Stocks [View article]
    1. DJIA since reaching intraday high of 14198 in October 2007 declined to 6443 on March 6, 2009.
    2. This is the index decline only, many blue chip stocks as you know declined 90%.
    3. To buy stocks you need money, but where to get the money to buy stocks when all biggest institutional investors were invested in the same stocks ???
    4. You can't buy more stocks when you are 40-90% down on a year.
    5.Still the market went up, now the question who bought it and how.

    1.The biggest buyer of stocks since the lows were hedge funds that were short till the lowest levels around and based on TA they use, started to cover shorts and this is why DJIA today is 9600, not 6000 and less.
    2. It's very bad for the market, where only buyers are fat hedge fund cats who cover and wait to sell again to make even more money.
    3. Economy can't hold on FED printing money to save the banks and hedge funds buying to cover shorts, this makes markets look stable to stupid investors, but it doesn't create more jobs and only creates instability for the US$, inflation, commodity craze, as investors wanna buy only something that sells.

    The question for the bears remains:

    1. When biggest hedge funds will start dumping markets again, bringing it to new lows.
    2. What will happen to DJIA and other big cap stocks if Warren Buffett will feel bad or get sick
    , at his age it happens suddenly. (Long live Mr. Buffett!!!).
    3. What will happen to the markets in the event of big terror attack on America or Western Europe.
    4. What will happen in the event of sudden military attack on Iran by Israel and US.

    My clients are very well prepared to all of this events, because timing is everything and we know the timing of such events before it happens. We don't have any accounts with US bank or other financial institution, all trading is done from solid, secret, offshore jurisdictions and banks. We believe in US exchanges transparency and clrearing firms but we don't trust US based financial institutions.

    Charts in Instablog.
    Sep 14 12:41 PM | Likes Like |Link to Comment
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