the Greenspan fed chopping rates is what got us here in the first place..... we're now on a path to cut rates more??? recession/depression cleans out poor credits and installs discipline ...... failure seems to be a virtue nowadays .... When Trump said of his casino woes "Our bankruptcy has been a great success" i knew this society was headed south....
In a liquid market we have lots of participating buyers and sellers in the same zone. If the buyers have tons of cash but don't want to participate they have little motive to avail themselves of easier credit. Buyers are cautious because things are just too complicated and undefined for them to exchange their money for instruments they can't trust or for institutions that have invested in those instruments. Next week is critical. Here's hoping Thursday's bottom holds.
Bob Brinker August 16, 2007 S&P 500 Index close: 1411.27 In our view, the stock market is currently in the process of forming the area of the S&P 500 Index correction low for calendar year 2007. Correction bottoms are frequently accompanied by a high level of stock market volatility and negative financial news, and both of these factors contribute to the formation of the bottom. One of our key sentiment gauges, the 60-day put/call ratio, closed today at its historic record high of 1.06. This reading shows extreme pessimism for this contrary indicator, which places it solidly in the positive category. The Marketimer stock market timing model is currently in highly favorable territory. Any further testing of the area of the correction lows, which we expect to be close to the current S&P 500 Index level, is regarded as an additional buying opportunity for subscribers looking to add to stock market holdings. Marketimer expects the S&P 500 Index to register new historic record highs as we move forward into next year.