damage needs time to repair

wow.. the color revolution is here.. it is all red.

hope we are holding well. and if you are a few luck ones with short position, congraduation is in the order.


60% percent of trading is due to psychology. Many times we have right feeling about market and stocks, but, we just cannot execute right. Lately Many people already knew the market is in trouble, volatiliy runs high, the news was not good, but we still buy -- buy Citibank, buy google, lend etc. the only reason is because those stock are down. Buy dip and sell into rally have worked for so long, so, why not this time, except this time is a little different and we are forgetting the lesson we have learned in year 2000. Sun, even CSCO was way higher, and they have not returned to their formal high after long 7 years...

yes, the market will rebound, DOW may cross 14000 again, but it probably takes a little long than few days. Like a injured beast, it has to lick its wound, recover its energy and then recharge. hope that day will be here sooner.

PS.

where all these money go?

if the market was in its normal correction, all these mutual funds/hedge funds will sell some money because the they feel enough money are made or it become expensive (like value funds when p/e exceeds certain number they will have to sell to stay as value ). Those money will come back to the stock market to fuel next rally. but where the current money will go? I wonder, if the hedge fund need to liquidate to meet the redamption, then, these money may gone forever. Also, credit get tighter, thus, margin become harder, that also will likely reduce the fuel to power next rally. So, it may take a while for the market to go up again