Calm Down

Folks, while the Fed\'s injection is bad for the tax payers and US$. It\'s good for those who hold gold and commodities for longer term.

With VIX over 40 now, amazingly, a lot of folks still do not feel this market is panic enough.

Now, will the market suddenly go crazy and move down another 15%? Possible. But I strongly doubt it. Why? Because the public and the world have not lost 100% trust to the Fed yet. You and I know that the Fed do not have much left. That does not mean the public will know that.

If the market does drop another 15%, I will buy buy buy. that\'s all. Moving down another 15% quickly would literally cause less torture to the market in general which will trigger some strong buying interests, and thus a huge rally.

Another question you might ask is? If market drop another 15%, will that signal the bear market bottom like the one in 1987? God knows. But I doubt it. If we would lose 40% only at the middle of this melt down, then we better take the afterward huge rally to sell, sell, sell, because the worst will be much worse than the 40%. Bear in mind, back in 1987, WS has money to load up the truck and now they don\'t. If we do see another 15% or so drop in the next couple of weeks, that will be a very good news for Bear long term and very bad news for Bull. It implies that, this Bear could turn out to be the worst of the worst in the history.

With that plan in mind, I am in peace. Folks, what\'s your plan? If you do have one, then why panic?

I have said enough these days and I will shut up for a while.