Re: Basement Near
in response to
by
posted on
Oct 07, 2008 08:23AM
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Hey JQ!
Yeah I saw that today, and generally from what I've heard of the VIX index (this is the Volatility index for those who are wondering) is once it gets up over around 40, you should start buying, and I believe they said we hit 58 yesterday, which is unseen. So there have been a lot of people buying because of that. I also saw a couple analyst that said the US dollar run is pretty close to being over, because of the new money being printed and if not more to help get out of this financial problem, and once US dollar starts to go down, commodoties will rise back up. I can imagine OPEC starting to cut production a little bit if it starts to get to low for their liking.
The one good thing about this pullback is a lot of people can start to buy higher, including mostly institutions, but that's great because in the long run, we have less shares avaliable and these institutions buying are holding for the big prize, not short term. We got up to our ATH's via hedge funds and when they sell off, they take many with them. Even with them selling off, we were still in the $3 range, but its this recent market turmoil that has sent us and pretty much every stock in the market to oversold and undervalued range. Now that's why good news like we expect is important, because people waiting to get back in have to decide which stocks to get back into, and if we show economic rates, then we'll draw many more of them in to invest long.
Rocco