Shorting the market

[Moscow Mule]

There may well be some calm restored to the market after the Lehman CDS auction on Friday.

The results of the auction weren't good but at least everybody knows thier maximum outlay now (after the legal wranglings have been worked out).

[ThomasSoerensen]

Monday = Dead Cat Bounce

agree

[SantaClaus]

Yes, I would recommend you do that.

Monday will be good, bearing in mind the Dow ralllied, the Americans have agreed to pump money directly into the banks and the G7 will reveal new plans.

Going down on Monday. Of course it is.

Monday = Dead Cat Bounce

[Green Mango]

Very hard to predict how much further it has to fall.

Brokers tell you the market is oversold, but that opinion is
based on boom earning and not severe recession earnings.

The lowest estimate I have seen for the FTSE to hit is 1700
that is based on the premise that in the boom credit was dirt
cheap now it is much more expensive and even cutting interest
rates has no effect on the rates charged by the banks.

However, the market never goes in just one direction if
you had shorted on Friday, your stop loss could well have
been triggered in between the rallys and the falls so in a
very volatile market it helps if your are following the market
quite closely not that easy to do if you're working.

[BrilloPad]

Until the panic sellers are out not worth investing.

[MarillionFan]

Yes, I would recommend you do that.

Monday will be good, bearing in mind the Dow ralllied, the Americans have agreed to pump money directly into the banks and the G7 will reveal new plans.

Going down on Monday. Of course it is.

[beaker]

Anyone doing this right now? I have been considering it over the past week, while it's dropped lower and lower. At least it's a hedge against declining the declining pension pot...

No end in sight from my perspective, more bad news every day...