Still No Panic?

July 8, 2008

Trader Mark submits:We are doing all the things necessary to form a bottom - the natural
gas stocks are finally being hit, fertilizer is now joining coal in the
outhouse, and we are getting some minor rotation into financials. All
things we’ve been looking for to form a bottom.

On the negative
side - this move into technology as ’safe haven’ is, aside from
idiotic, is stalling the process - now people are using Apple (AAPL) and Google (GOOG) as safe havens. We need to eliminate all safe havens. And then it will be safe(r) to swim. The VIX is still in the mid 20s unfortunately - I’d like to see it cross 30. (What’s the VIX you ask - read here)

This has to be one of the more orderly carnages
I’ve ever seen. We’re taking a lot of boffo hits in the portfolio in
individual names, but I remain on the sidelines with new buy orders
despite some salivating prices, since I want to have cash at the ready
when (if) a real panic emerges. I still don’t see that panic. Maybe
there will be no “panic moment”… but I am hoping for some between now
and Friday when I think General Electric (GE) [just a hunch] will
provide a soothing moment to the market.

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