Wow it was a bad day today. This market just seems poised to stay down for some time. With this inflation,defaults on mortgages and skeletons appearing in the closets of banks it seems like this bear market is going to last for a long time.
Im sure tomorrow the markets will add on some gains for the bulls. I think they are worried yet again about a breakdown below 12k but for some reason I think they will be able to push the markets somewhat higher tomorrow.
What is interesting is that there does not seem to be any sector that is safe with the exception of commodities. 96% of S&P was negative. I would not be surprised if the S&P keeps going down with so many problems. In the end if inflation hits the pocketbook of the consumer and they no longer have access to using a home as an ATM and all this stuff about the bank problems is pretty scary.
If you have questionable long positions and will sleep better out of those specific positions, sell every rally. The VIX is not going to smooth out any time soon and the 'Get The Hell Out' indicator is screaming at us all.
Commodities will correct, give it time, you will see this sector drop a quick 25-40% in no time. Consumers are totally tapped out, no more massive piggy banks to borrow against, no savings and credit cards maxed, where is the consumer now going to go..... 2/3 of consumer spending makes up GDP, expect GDP to go NEGATIVE sooner than later.
Yawn. And that's why you are long UYG for yet another HUGE loss . . . The consumer is tapped-out, but the Banks are gonna make money again. Go figure. I guess a broken "clock" can be right every now and then. But when you are a "paper-trader" like yourself, there is never a LOSER, right? Ahhhhhh, the beauty of taking classes at Univ. of Central Florida and getting paid to post on ET!
The only position my trading is long on is GE once more again at 29.86 close to the end of the day. I would not be surprised if something like Washington Mutual ends up getting liquidated(is that the right term?) by FDIC and passed to someone else. Some big name is going to shutter I would guess in the next few months.
Your feelings are not facts. No one knows what tomorrow will bring, but since your doom and gloom is back looks like it will fulfill your fantasy. The weaker you get , more sicker I get.