Playing it Safe is Paying Off
What a mess. The impact from the storm seems certainly more serious to the economy than first realized . Traders who jumped the gun yesterday ( that were conditioned to buy any and all bad news) certainly feel foolish so far today. There is a difference from being a contrarian that has the ability to guage a situation and assess if the crowd is over reacting, versus simply being reckless. The damage from the storm perhaps seemed light at first due due to the inability of the media to accurately report on it . Ironically, the severe flooding hindered the media which showed that the worst fears of flooding had not materialized.
We now know that over 80% of New Orleans is flooded, and damage to the nations oil infrastructure may take months to repair. Most over anxious bulls did not pause long enough to even get into their offices as the bids were already showing up pre-market. The pattern of buying bad news seems so ingrained with these young gun slingers. We are afraid to imagine what the knee jerk reaction in the market would be if they were "saddled" with truly wonderful news.
The market is still plodding along its downtrend. Unfortunately, we see no turn around at this point in time . In fact, we are expecting another shoe to drop . Another storm, terrorism, geo political flare ups , a large corporate pre- anouncement, .... take your pick . At least one of these events are due and the market is in a very vulnerable state . This is not the time to trade cute or to be a hero . Instead traders should be only interested in finding ways to protect their capital. Hmmm....lets see......how does cash sound?
Like music to our ears. ___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (âKTBâ) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (âKCAPâ) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firmâs principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________
We now know that over 80% of New Orleans is flooded, and damage to the nations oil infrastructure may take months to repair. Most over anxious bulls did not pause long enough to even get into their offices as the bids were already showing up pre-market. The pattern of buying bad news seems so ingrained with these young gun slingers. We are afraid to imagine what the knee jerk reaction in the market would be if they were "saddled" with truly wonderful news.
The market is still plodding along its downtrend. Unfortunately, we see no turn around at this point in time . In fact, we are expecting another shoe to drop . Another storm, terrorism, geo political flare ups , a large corporate pre- anouncement, .... take your pick . At least one of these events are due and the market is in a very vulnerable state . This is not the time to trade cute or to be a hero . Instead traders should be only interested in finding ways to protect their capital. Hmmm....lets see......how does cash sound?
Like music to our ears. ___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (âKTBâ) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (âKCAPâ) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firmâs principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________
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posted by Kleiner Capital Management, LLC. | 1:21 PM
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