Saturday, February 11, 2012

Week Ending on 2/10/2012

Greece is such an attention whore.  No sooner do I threaten to take it out of the limelight do Greeks start to not sign treaties and throw down with police. 

Last week has a potential to be what I call a "wasted week" for me.  Basically it was a down week, but did not become cheap enough for me to buy more.  Its wasteful potential is only realized if we go back up from here, but if this is a short term top and we go down some more (c'mon Greece, do it for daddy) then I can definitely salvage this.

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The stock market is a misnomer.  A lot of movements have nothing to do with the stock or underlying company.  Anybody who thinks this business is all about finding and owning a piece of well-run corporations will go through long periods of desolation and soul-searching.  At end of the day, we buy these stocks with dollars.  If dollars are in high demand or another market requires more of these dollars, stocks are going to suffer.  For example, we can make the argument stocks go down in a bear market because companies face diminished prospects in a recession, but one can also say it is because investors and traders rather park their capital in treasury/cash markets to ride out the recession, thus leading to lower demand for stocks.

I forget who said this first: "We are all currency traders now."

Jam of the Week: