Market Chasers

Excellent!: December 8th, 2008

December 8, 2008 – 8:26 pm

This picture just about summed up my trading day and yes, my hands were in the classic “Mr. Burns formation”. I observed the biggest percentage gain day of equity trading (not options) ever, mainly due in part to the large Dryships (DRYS) position I took up on Thursday and extremely heavy energy and commodities exposure.

All joking aside, these last two weeks of trading have been brutal and literally have been like my dog pictured below. What is he doing? Sleeping and doing nothing, my exact trading strategy. Can someone please tell me how you trade 1000 point ranges a day fluctuating triple digit advances and declines all in the same session? So to counter act this, I basically sat on my ass and did not do any sort of true day trading. I firmly believe that we have bottomed for a bit and are destined, DESTINED for a true bear market rally, not this hooptie-wooptie 1000 point advances in three days we have been observing. Christmas is around the corner and realistically, there isn’t much to be thankful for but psychologically, you can sort of expect a rally since is it in fact Christmas. Once this rally has hit a certain level, is it time for the bears to come out and play again but until this happens, be like my dog.

As I close this post, it seems more and more certain that the big three automakers will be obtaining a bailout, another reason we should see a short seller heart ripping bear market rally. In my opinion, this is just delaying the inevitable bankruptcy of atleast one of the three large automakers in this country. What sucks for our fat cat politicians in Washington is that this situation falls in a gray area. If they do not bailout the automakers, global chaos will erupt, but if they do bailout the automakers then what happens if they burn through the cash again?

In my opinion, someone is going down and I believe it will be Chrysler and Ford. If these companies have any chance for survival, these things will need to happen:

*I am instructed to keep my post a clean as possible but there is a vast array of curse words I would love to say to amplify my point for certain things*

1) The UAW needs to go. Period. No if and or buts about it. Those greedy sons of bitches are probably the main reason why these automakers have been going down (with the exception of reason #2 below) in years past leading up to the bailout hearings of last week

2) The business model paired with meeting consumer needs.

A. I hate to be so blunt when I say this but consumers in this country need to get their head out of their ass and get a reality check. The American demand for large, bulky V8 sports utility vehicles are the reason why our automakers must abide by these “needs” and create vehicles to sell to the consumer. This is in fact business folks and I don’t really think a Honda insight is the most attractive vehicle around. If you don’t need an SUV, then why the hell are you buying one? When oil went up and the American consumer started crying about high gas prices and didn’t want to buy SUVs anymore, what was GM and Ford suppose to do? You brought this upon yourself folks, these automakers were trying to meet your needs.

B. Learn how to manage money folks. This is part B of the “get your head out of your ass” series. If you cannot afford a 5 bedroom, 5 bathroom home then why are you buying one? If you are complaining about gas prices, why are you buying a hummer?

3) The CEOs all need to go. These companies need a fresh start.

-Jusitn Moon, Senior writer for marketchaers.com