Friday, August 17, 2007

CRAMER's 1,000 point DIP THEORY!?!

Would we rather be right and have a HUGE 1,000 DIP today... or have the FED cut rates and our post be wrong and make MONEY!!!? .... Cramer says Ben saved us today and saved the mortgage industry, etc....we'll accept being wrong ;-)

If you are watching the show you just heard JIM explain the reasons behind what would have been "the 1,000 point dip" today....(we'll send a link once available)

Yesterday when we broke our target of 12,700 we posted "we're not convinced" ...then at 12,500ish on the 300point plus dip ... we posted "still going target 12,000....the world is could sell everything today .... then buy back lower next week or even next month" ....and when it rebounded and went green for the day, we got even more worried..."Don't believe the "green" hype....sure its nice to come back from 300pts down...but we need to "end" was a tease, a test, a glimpse of whats to come."


p.s. but don't forget one of our favorites ... "opportunity cost" ... had we had the 1,000 dip it would have been quite the buying opportunity ... eh?

p.s.s. yes, we just said ... "had we had"


stocksystm said...

IMHO, the Financials are in the first couple of innings of this decline. To talk about looking to buy now is much too premature. In fact, I can't believe a man as smart as Buffett is doing serious buying of the banks here. Ben Stein talks about this perhaps being the buying opportunity of a lifetime and that Merrill Lynch is being given away. Please! He really sounds like a greenhorn on this. This is going to get much, much uglier. I would imagine the Financial Select Sector Spider (XLF) could drop by another 50% from here after many of these brokers and banks earnings simply evaporate. Many were similarly making the argument a couple of years ago the homebuilders were cheap due to their low PEs. Buying stocks in cyclical industries when earnings are peaking or have recently peaked is a very bad idea.

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