Well, that was some bull run, baby! I tell ya, anyone dumb enough to be buying banks that have doubled or tripled in 4 days for more than a trade gets what they deserve. I thought we'd get one more pop, and we did and it was nice, but that was that. Will we rerally in that sector? Perhaps, but any smart fund or investor is going to be dumping these things into any rally attempt. And, rightfully so.
Now you see clearly why I keep saying that the government continues to do just about everything wrong for the stock market. And, in my opinion, for the economy. I think its shameful for Bernanke to go on National TV and say with a straight face that the recession is going to end more than likely in 2009.
Hey, man, and wo-man, I hope so, I PRAY that to be true, but there is no evidence historically or otherwise that would indicate that is a reasonable assumption. The only thing that is reasonable to expect is rampant inflation, rampant unemployment and zombie banks.
One trend you might want to make note of reared its ugly head today again, and that's the BARRON'S TREND! They are almost always wrong, same as booyahhead! Who the hell says to buy GS and MS when they have basically DOUBLED? I just don't get it, I really don't. I wasn't around much today, but jeez louise, I shorted GS at the open and fade some cash on it! Barron's said that GM was a great deal when it was like $20, I mean, they are almost always DEAD wrong, its uncanny. Even a monkey throwing darts gets 50% right, but these "experts" go like 15 to 25% and still have readership. AMAZING!
Tomorrow will be interesting. The futures have been all over the place, but within a fairly tight range. I think a gap up is just an immediate short baring some market moving news. It's a gimme if no news. Financials look way spent, I wouldn't touch them here, but I do think we may get one more bounce and then on to new lows again.
What's amazing to me is how investors just keep getting smacked and yet keep piling in anytime we get a Bear market rally. They sure are gluttons for punishment!
If we can't bounce, there are several stocks that look interesting as shorts, with outs. GOOG could see $300 by the end of the week if we go down, and CME looks like its hanging on by a thread.
Also, watch SRS cause it was strong as hell today. SKF double bottomed today at $125 area and you saw what it did. It's bloody out there, who the hell is buying BAC near $7 after a 4+ day rally? C at $2.60s? I mean, why? These things have no dividends, so you are relying on the govt to make your investment pay off.
Do I have to say anything else? Plus, I got two emails this weekend asking me if they should buy BAC now. If that ain't a sign of a near term top, what is?
Let's see what shakes, there may be some buying interest if we dip down to 7000 area again, look at that as support here but if we can't hold 7000 we're in a bigger heep of trouble!
See ya on the other side, we've been making slow steady money here, you can't go nuts here, we're just too choppy, you need to pace yourself and take profits. Don't get stubborn and don't chop yourself into oblivion, the market is usually now picking a way to lean into the close and we have to get that right and then ride it, that's been where the biggest moves come lately, so heed that!