<A Debate Proposal for the Ethanol Lobby - Let's Get It On The Oil Drum Open Letter to Duncan Clarke>
<DrumBeat: August 15, 2007 DrumBeat DrumBeat: August 17, 2007>

310 comments on DrumBeat: August 16, 2007

Comments can no longer be added to this story.

Show without comments | PDF version

jteehan on August 16, 2007 - 12:33pm Permalink | Subthread | Parent | Comments top

You see panic when you have a predicted CAT 4 headed (best case) towards Cantarell, second best GOM, and worst case both, yet oil down $3. People are selling like crazy to raise cash.

In fairness to oil prices, yen is down 3% as well.

This is the same MSM that didn't bother to warn what I think most people on this board were predicting 6 months ago.

By the time CNBC says things are bad, you might consider buying.

Comments can no longer be added to this story.
Dragonfly41 on August 16, 2007 - 1:03pm Permalink | Subthread | Parent | Comments top

Yes, it could be strange that we could relatively cheap crude/gasoline, but still have spot shortages.

Deflation?

Comments can no longer be added to this story.
igdonp on August 16, 2007 - 1:28pm Permalink | Subthread | Parent | Comments top

By the time CNBC says things are bad, you might consider buying.

Exactly! When the MSM says it's the end of the world, and there's fear all over their faces and voices, that's the time to buy - if you're not making in your pants yourself that is. It will be a big gamble though and a wild ride, no doubt.

-Don

Comments can no longer be added to this story.
Cid Yama on August 16, 2007 - 1:39pm Permalink | Subthread | Parent | Comments top

Bull Trap.

Comments can no longer be added to this story.
jteehan on August 16, 2007 - 1:51pm Permalink | Subthread | Parent | Comments top

I agree for the most part. I would recommend most people just stay out for now. I'm short via QID and I've got some buy/writes going on the QQQQs.

It's my version of a market neutral strategy, but is biased towards more downside.

Cramer is not the brightest bulb on the tree, but he's right about there aways being a bull market somewhere.

If you don't understand it, don't buy it.

Comments can no longer be added to this story.
Cid Yama on August 16, 2007 - 4:13pm Permalink | Subthread | Parent | Comments top

The final for the Dow was blatant market manipulation. The rest of the world will not fall for it. The recovery of 300 points in the last 40 minutes for no reason at all, is bull. Wait til tomorrow, it being Friday. Just as I finish writing this, Ron Insana comes on and says it was "too perfect", and he doesn't know if he believes it.

Comments can no longer be added to this story.
totoneila on August 16, 2007 - 5:04pm Permalink | Subthread | Parent | Comments top

Hello Cid Yama,

Very intriguing point! So maybe tomorrow we will see the market plummet 600 points, but then the 'Plunge Protection Team' [PPT] will drive it back up again in the last trading hour. Any idea how long the PPT can do this?

And at what point does the PPT covertly convert, then stand for...wait for it... an unannounced, corrupt, but very exclusive bigbuck$$ 'Plunge Profit Team'?

I have no idea if any of this is really possible, but I want to know more please.

Bob Shaw in Phx,Az Are Humans Smarter than Yeast?

Comments can no longer be added to this story.
Spaceman on August 16, 2007 - 10:44pm Permalink | Subthread | Parent | Comments top

And at what cost?
How much money does it take to reverse a 300 point selloff?

Comments can no longer be added to this story.
step back on August 17, 2007 - 9:47am Permalink | Subthread | Parent | Comments top

How much money does it take to reverse a 300 point selloff?

Poof.
It's been done.
This morning with the wave of a magic wand. Dow is up 300 points on opening.

Isn't it amazing how we humans can cause the price signal to move up and down with waves of our magic wands?

Click your red ruby slippers together and repeat after me:
There's no place like FOMC,
There's no place like FOMC,
There's no place like FOMC,

See Dorothy? All you got to do is believe.

Comments can no longer be added to this story.
WNC Observer on August 16, 2007 - 5:15pm Permalink | Subthread | Parent | Comments top

Your federal tax dollars at work, or something like that.

Comments can no longer be added to this story.
PartyGuy on August 16, 2007 - 5:30pm Permalink | Subthread | Parent | Comments top

There a link or youtube to what he said?

Comments can no longer be added to this story.
Mark Twain on August 16, 2007 - 7:34pm Permalink | Subthread | Parent | Comments top

Dow recovers most of a 340-point drop

Financials bounced back led by a nearly 13% in shares of Bear Stearns. The company, which heralded the recent credit market crisis when two of its hedge funds ran into trouble, has been talking with potential investors, including Chinese banks about new funding, said Richard Bove, analyst at Punk Ziegel & Co.

The firm is talking about selling as much as a 20% stake in the company, Bove said

Also helping financials, a report by rating-agency Fitch said that U.S. brokerage firms are well funded and have sufficient capacity to absorb losses from marking their assets to market.

Comments can no longer be added to this story.
jteehan on August 16, 2007 - 7:37pm Permalink | Subthread | Parent | Comments top

You know, a lot of these Hedge Funds getting margin calls have short positions too. I suspect a lot were hoping to cover as the market continued to go down but got forced into as others covered before them.

Keep in mind Options on Oil Futures expired today and stock and index options expire tomorrow. Index options expire on the open.

I wouldn't read anything into the events of a single day. The trend is clearly down until it changes otherwise.

The dow and nasdaq closed lower and the nasdaq 100 was off over a percent, so I'm not sure what the party on CNBC was all about.

Comments can no longer be added to this story.

310 comments on DrumBeat: August 16, 2007

Comments can no longer be added to this story.

Show without comments | PDF version