Change Name of DOW to 'DOWN'…The DOWN Jones Industrial Average

Posted by Howard
on October 27th, 2008

Today was horrific.

I have two stock holdouts from my all-time high days. Neogen (NEOG) and CCC. To be honest, there is no reason to own ANY individual stocks, let alone small caps in a bear market, but both stocks have held up rather well. Today, CCC imploded. I can’t find any real news, not that I care and I had to blow out.

I can’t imagine having to invest/manage a long only fund.

I boot up each day to check my hedge fund stock accounts at Interactive Brokers (used to be long) and my heart skips each morning when I squint at the equity line. It’s like watching ‘Friday the 13th’. You know Jason is going to jump from the screen and attack your capital, but you keep looking at it.

The world has given up on stocks. There are 18 (eighteen) S&P stocks out of 500 (duh) that are up on the year and most of those are low single digits.

The ‘Reverse Bubble’ in equities has reached a stage that is almost irreperable. It’s not so much the overhead supply that awaits us as the outright fear of buying anything.

In fact, all we get these days is ETF and Derivative ETF buying by hedge funds to hedge the short positions they have on individual stocks. No one owns individual equities, except maybe mutual funds. We all know – including hedge funds – that mutual funds will continue to receive massive daily liquidations in the short run – so it’s like shooting fish in a barrel for shorting into rallies.

Of course this will end. I just don’t know when.

In the meantime, your guess is as good as any and since we are all guessing, just do nothing.

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