Sunday, September 07, 2008

Gary K's Friday Show

Gary K's Friday show---

Gil Moralis was Gary K's guest on Friday.

Gil (has covered his shorts on Friday) and is talking about the concept of forced selling by institutions (de-leveraging). He covered because now Bill Gross is talking about it, as well as others. When it is in the popular media, that means that it is more known.

Gil believes that the July lows will be tested. Hedge Funds are affected as well by institutions that need to liquidate their holdings to raise liquidity. Gary asks Gil to suggest to listeners what they should be studying to understand

Understand the underlying conditions-is there enough liquidity to sustain a bull market? Look at the leading indexes to understand if they are under distribution. Look at their own positions and back away from losses.

Gil Closes with this: In the end, credit drives liquidity and liquidity drives the market. It's worth remembering.

You can find a print interview with Gil HERE. You can also sign up for Gil's free newsletter here. I don't currently receive it, but I just signed up for it.

Gary notes these:

  • No characteristics of a washout.
  • No leadership to speak of. Most stocks look a mess; in a downtrend.
  • Great time to NOT lose money.

I'm off now to do a transport--we moved it due to Hanna passing through. The storm brought some welcome rain, and not too much unwelcome stuff. We did not lose power, but other parts of our county did.

Physically, it is a rest day for me. Last night I was able to wear a pair of pants that I've not been able to wear in about 6 months. I sure did feel good.

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