Heyer Capital, LLC

investment management and timely advice from a local CPA (Fox Valley, Wisc.)

easy does it

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Wow. I had the distinct pleasure today of having a client sit with me in the trading turret while the market was, well, getting volatile. It’s nice sitting on cash, let me tell you.

You can tell they were grasping for all the cash they could because even precious metals (which you would THINK would be the place to be in a flight to safety) sold off hard. Yep, this is a good old fashioned credit crunch.

The last one snapped Citibank in half from its summer 1990 highs to early October. Keep your powder dry, and your wits about you.

Today finished like a capitiulation. Put-call ratio spiked today. Decent names getting slashed 5-15% intraday. Emergency cash-infusions. Bankruptcy rumors. Despair in the morning, high-fives at close. Somehow, though, I don’t think bottoms are marked with high-fives. Perhaps intermediate lows. I’ll give a nod to the March rally which started with a day such as today.

What’s ‘funny’ about the markets is that Wall Street knew about all the subprime issues, housing bubbles, Iraq-Iran, etc. and all the worries the world three months ago. But it didn’t matter then. Things don’t matter on Wall Street, until the prices say they do matter.

Sometimes, we try to squeeze ahead of the Street’s brains and computing power. For me, I say let the price action tell you when it’s ok. As it’s said, it’s easier to make up lost opportunities than to make up losses. Use this downtime to research your watchlist. Strong stocks holding their heads up above this muck are good places to start.


Written by heyercapital

August 16, 2007 at 10:41 pm

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