Last week was not the bottom

This market is even weaker than I gave it credit for. Buffet buys a stake in Goldman, the bailout plan will pass any day now, and the market can't rally. The gap up after the bailout plan passes will be the easiest fade in history. There is no way this market makes a move up until after taking out last week's lows. This bailout plan does nothing for the economy except weaken the dollar and increase the price of commodities. Wall Street is already seeing through it. There are new stuck bagholders who got excited last Friday. All equity bagholders are looking to sell the bailout plan rally after it passes.

The only way to attract long term buyers is to lower the price, not raise it. The principle applies for stocks, bonds, and toxic derivatives. The idiots at the Treasury and Fed think they can manipulate the market higher by spewing money. That money will just find their way to the only place of value: commodities.

 

Think about what is going to happen once the short ban gets liften off of the financial stocks. Really makes one wonder.

 

It's bigger than that, it's that part of the business cycle where things slump regardless.

 

I agree wholeheartedly. Credit contraction, shrinking M2 supply,

increasing rate of unemployment, slumped markets...etc.

It's a no-go. I just think that the lifting of the shorts ban might

be like a shot of nitrous to the market decline. It will be

interesting to see how the SEC goes about the reinstatement of

the rule amidst this storm.

 

Wait till earnings are in full swing.

 

Thank about what'll happen if the market sells off and there are no shorts to cover. The government has succeeded in removing all kinds of players from the market. Things are so thin out there, it's crazy. If things slide, the ranges and volatility could be eye-popping.

 

Unless there are more huge bank failures in the coming week's which are probably likely i still think that last week's low will be the low for the next week or so. My bet is that the bailout will have a very large short term impact on the market which is why i have bought everything in sight. I am probably going to sell everything around Friday afternoon because of the shorterm rally. Should see around 3-5% out of this with ease.