Unfortunately, there's still no bottom in sight. It really would have been prudent to listen to what the small caps were telling us last week. I'm still expecting a prolonged rally, but from what price? Stocks are slicing through support levels like a hot knife through butter. Unless there is some extremely bullish news that comes out tonight or tomorrow morning it looks as if we will could see the 8,000's on the dow tomorrow. Even some bullish headline like a rate cut is likely to get faded in this environment, its a crisis of confidence and the bears rule the world right now.
2 comments:
Rate cut will be eaten and spit out within minutes. Ask yourself,
has not the "effective" rate already been lowered. And, how long did it take "Ms Market" to gobble up 700 Billion? Fed is inefficient, and now has a bulletless gun, like spit in a hurricane. Fasten your seat belts, my friend, please do not get caught in this war for what little amount of liquidity remains in this "market". Remember, "When the elephants roll over, the ants get squashed." Best of wishes....
Lol, staying short here is swinging from the fences and carries extremely high risk.
And as far as the rate cut rally goes, your obviously new around here because I've been saying short the rate cut rallies since before the rate cut cycle began:
http://stockgeometry.blogspot.com/2007/12/s-p-500-vs-fed-funds-rate.html
The ants that are gonna get squashed are the ones who refuse to cover when the rally does come.
Its funny that you're trying to make me out as a bear when I've been right and bearish for two years. All I'm calling for is a rally and I got in at good prices.
http://stockgeometry.blogspot.com/2007/08/cat-is-better-way-to-short-dow-jones.html
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