Bush: "Economy is sound for long term"

traderonwallst

Thanks, for you positive outlook, I trully appreciate you view of things and I know that you are doing very well with the opportunities presented.

At least people like you are making something from the volatile markets and is not limited to the filthy rich.

Thanks Marg, at least I think thanks. I am by no means filthy rich, nor am I even rich. I have made a lot of money for other people. The problem with things is it takes money to make money. So I have been able to make money for others, while I have made a decent living for myself.

One other point I would like to make, is a few months ago when everyone was yelling America is going down and you need to invest over seas, I was telling everyone that America is a safe place for long term investments. I just want to point things out that go on over and over again. When America sneezes....the rest of the world gets a cold. This is a long running saying down on the street. I got short in May/June and have just about covered all my position (still short MBI). Once the contagion began to go overseas I started shorting Europe. All the banks. Things on a large scale are never held to one side of the pond. Recently we have been closing those position. By January 10th we fully short China. In 18 days we were up over 21%. Things at a fundamental level are already beginning to work themselves out here in the states and we are now net long. But again, we are trading the stocks, not investing right now. We have 2 separate trading ranges we are playing. Right now there is a little less volatility in the markets so we are trading the inside range. We recognized this becasue we see the patterns in the charts. There are a lot of things in the market you can use. Patterns and charts are just one of them. When trading, they can be some of the best tools. When investing, fundamental analysis is your best tool, followed by reading the notes of the annual reports. The notes tell you what the numbers don't. The numbers tell you where they were, but the notes can tell you where they are going. They also give you alot of information on credit facilities, and their loan covenants. If people had read the notes of Enron's annual reports, people would have seen how much money there wa to be made on the SHORT side. Enron still remains my biggest trade (most profitable) ever. Their loan covenants were very particular as to what would happen in the even tof potential defaults or even basic violations of the covenant package. We called it an ENRON PUT. I put just everyone I know on the short side of that trade.

READ, read, read. Learn, learn learm and recognize patters. Patterns repeat so if you miss one, recognize the next one.