I'm long FNM right now. Why on earth would you short companies that are run by the printing presses??
Just look at the market internals and how they have changed the last few days, this is a market attempting to bottom and buyers are showing up slowly but surely especially in tech. If it doesn't hold we crash. Long NQ calls and ES puts is where I am, trying to catch a few day trades inbetween with varying degrees of success.
Just picture Brazil or Argentina. That's our future. The risk going forward will be in currency and government debt. That's not to say we won't see 14% unemployment-we will-but don't ASSUME that the day America goes jobless that SPX HAS TO BE lower than here.
my read is we are experiencing a pop here and there...major direction is lower end of oct or after pres election expect a dead cat bounce for weeks, mos.
i think there could be a short term bounce sideways action around the 9100 mark-35% levels from highs... but... this is a different breed of failure-1929 style 1929 collapse was credit fuelled and housing fuelled here is a good link... http://www.doctorhousingbubble.com/...-in-florida-and-lessons-from-the-roaring-20s/ now we may not see the same amount of decline/depression/deflation as 1930,s because the fed. res. was created to deal with this mess and they have more powers to deal with this mess-but this is a global problem also- so 50-60% capitulation???????????? safe bottom-i think the 1929 crash lost 90% by the time a bottom was in-if so then its time to go to cash and supplies- i am probably horribly wrong but bush has 3rd brigade in town for domestic disturbance exercises?????????????? i dont think marshall law but as a way to tell people to not get out of line-so with iceland seizing its banks and usa doing the same -others countries will follow-it is a great time to be alive to witness first hand-the temporary collapse of the banking system and its effects-it will take a mighty big war to end the decline-or start selling mortgages at 3% worldwide-that would do it-banks would rather see millions die than lend money @3% for a home property asset that has real value as long as the population keeps growing-here in seattle the skyline downtown is filled with cranes building luxury highrise condo's-go figure-they must know somthing we dont...right...?
The only silver lining is that this selloff looks very similar to the post 911 selloff, and in that case the market regained all the losses in a few months. When you have these nearly vertical selloffss there will be buyers eventually. The DOW should be above 11,000 given all the rate cauts and bailout.