Black Monday?!?

Ok the last black Monday was the biggest drop in percentage.


Today the Dow Jones industrials down nearly 780 points in their largest one-day point drop ever.

Off digg:
I felt a great disturbance in the banking system, as if millions of lenders suddenly cried out in terror and were suddenly silenced

economic future?

Here's a funny comic:


Good news, the bailout plan seems to be getting closer to getting passed.
Hopefully we don't end up like this comic.

bad day...

My life is sucking rite now.

Summary of the week...wtf?!?!

It's been a crazy week in the market.

Following the last weeks of FRE and FNM failing...



Highlights (or lowlights?) of the week.

- Lehman's 1850-2008, went bankrupt.

- Merrill Lynch since 1914, sold to Bank of America

-AIG bailout by the government

-Volatility has been crazy with VIX above 30 this week.

-indexes hit 52 week lows.

Dow 10,459.44
S&p 1,133.50

Then surges to end the week at:

Dow 11,388.44
S&p 1,255.07

with the announcement of the the gov increasing liquidity with other central banks. ban on shorting financials, then the gov rescue plan, bailing out the banks by buying the bad assets.



Actually its been a pretty historic week. Lets take into account how big these events are:

Lehman Brothers filed the biggest chapter 11 with Pre-Bankruptcy Assets: $639 billion
Before, that the largest bankruptcy was WorldCom at $103.9 billion.

AIG largest Insurer:





















Bailouts from a Gov, in a free market.





I don't blame him, I just thought its funny expression, when he talks about the economy.

Wamu...Amazing

Check this, Wamu investors are fight back against shorts.
They setting GTC (good till cancel order) at a high price,
taking the shares from being borrowed by shorters.


Even though Wamu has a market cap in the billions,
these guys were pretty inspiring, and actually got a lot of
small investors doing this.




http://finance.google.com/group/google.finance.611408/browse_thread/thread/3aab72cb14c195fe

Fundtementals Vs Technical Analysis

Keep in mind, my investing, trading, experience is 2 years. I'm still relatively new at this. This is just one important lesson learned from some mistakes. Hopefully, this will help other ppl see clearer, and not get so confused with these 2 terms.


Definitions according to Wikipedia:

1. Fundamental analysis maintains that markets may misprice a security in the short run but that the "correct" price will eventually be reached. Profits can be made by trading the mispriced security and then waiting for the market to recognize its "mistake" and reprice the security.
2. Technical analysis maintains that all information is reflected already in the stock price, so fundamental analysis is a waste of time. Trends 'are your friend' and sentiment changes predate and predict trend changes. Investors' emotional responses to price movements lead to recognizable price chart patterns. Technical analysis does not care what the 'value' of a stock is. Their price predictions are only extrapolations from historical price patterns.

I wanted to get these terms and definitions straight, and be able to discern between the two. Unfortunately getting these two mixed up has cost me. Sometimes when researching or reading other blogs, I get caught up sometimes with the technical analysis, and leave out the fundamentals. Then making trades, when I'm not fully informed.

I'm not an expert with technical analysis, (charting, price trends, etc), I believe I'm a bit better at fundamental analysis. But I going to try to be proficient in both strategies, and learn to use them both together. Fundamentals represent what "should be." Technicals describe what "is." Bring both together and try to use technical for entry and exit points, while picking under or over valued stocks using fundamentals.


Any comments, advice, arguments or questions are welcome.

note: I'm not so good with technical analysis, so any recommend readings, book, sites, or other info will be appreciated.




Additional readings/references
http://www.streetauthority.com/terms/t/technicals.asp
http://alephblog.com/2007/07/13/a-fundamental-approach-to-technical-analysis/
http://en.wikipedia.org/wiki/Technical_analysis
http://en.wikipedia.org/wiki/Fundamental_analysis
http://investologic.blogspot.com/2008/06/fundamental-vs-technical-analysis.html

Strange day in the market.

ebooks

Can't really keep paper books with me, because they're too heavy to ship when I go to different duty stations. My room is small, so I cant really have a bookshelf. So I started reading ebooks. Recently I stumbled onto this site.

http://gigapedia.org/

It's a book review site. But register and login in ; )

and since I'm on the subject of books
This was recently on digg.

http://community.livejournal.com/scans_daily/5408800.html

Okinawa Rocks!!

Labor day weekend in Okinawa was a blast. Wish I brought a camera with me this weekend. Friday got off work early, got books for school, went to near Futenma and visited a local shop for some business.

Sat went to the convention center down near Foster and checked out the local art. Later to Tropical beach, with some friends. Started a BBQ and ended up playing volleyball games with many of the locals there.

Sunday went to the gym and pool to work out.

Monday went down to Kokusai Dori, to pick up new shoes and eat some Vietnamese food. Ended up stumbling onto a concert nearby. Got in for free!! It was Japanese heavy metal. I usually don't like heavy metal, head pounding music, but these guys were good. Really like the band 'Del Henker'.

Wrap up the 4 day weekend Tuesday with a lot of studying and going to class.