Market quick view: Market is on the Edge of Big Rally. (9/23/08)

VIX is well contained, Dollar strenthed, Oil start drop, S&P hold above 1200. Bond yeild contained. Internal breadth is good.

All of this inplicate that Market is preparing and ready for a rally.
Now is waiting for Congress to pass 700B rescue plan.

Don't short. Instead buy dip and take a ride for market rally.

I think this week, congress will pass the bill.  It could pass as early as today.

[Alwaysblance]

I saw your UYG play although it closed now. How about buy a option spread now? If yes, how?

[wavePlayer]

回複pisces-hk的評論: Book can be changed quickly. GS has too many leverage and also has many toxic assets. It de-leverage from 20x, 30x to 12x, reduce the ER power.
It also under capitalized. It needs capital badly to replug its balance sheet. I think Buffet investment in GS is just in right timing. (He got very good deal.) This could change everything. Now GS has been rescued. But it will have massive layoff in the later days. Same apply to all other banks and financial firms.

[pisces-hk]

Thanks.

why do you set the $60 for GS? it's book/share is $99 according to the latest ER. Ofcourse, we don't know what's on the book ;-)

thanks again

[wavePlayer]

回複pisces-hk的評論: GS and MS become very different kind companies. The current value for both of them are too high.
I think GS eventually will drop below $60.

[pisces-hk]

what do you think of GS / MS ? will they have a rally however short term?

thanks