Friday, November 14, 2008

Who's Surprised?; Dow Down 338

My little experiment today was just a touch of humor at all of the pep talk by some on CNBC about no way to go but up. The big problem a lot of these money managers are making is that their customers aren't that dumb. Someone like Carter Worth gets on Fast Money drawing on charts as if a lot of the viewers don't have their own charts, following along. Someone might mention a "flag" pattern as if it's some cool new term, and the audience is three steps ahead of the guy, at home yelling at a TV screen, "That's no f***ing flag. It's a f***ing classic base failure." Then they go get through their chart book or go to stockcharts.com to confirm. By the way, both the book and the laptop are right there and the wireless modem is fired up. The public is more sophisticated than the government and industry seem to realize.

Whether that's the way it is or not, the public starts getting the idea that those guys at CNBC and other places are trying to trick them into making the opposite trade that should be made. That's what can cause a huge run on brokerages. If these guys don't stop trying to call magic bottoms and telling people it's going to be an up day when everything indicates a down day, Wall Street and the US government is going to have a problem it can't handle...if it's not that way already.

The post is below, to go see what my experiment was...CNBC; Another Stock Market Bottom.

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