Every time the DOW falls a tad below 8000, the "buyers" come in...first on the futures market. Or, some element of "news" turns it around. Hmmmmm......
As we started to selloff today after the rally, BAC announces CEO buying shares. Now don't get me wrong, I'm 90% long, and jump in and out of short hedges.
I of call people can only speculate....PPT? All I can say is I respect it. THe line in the sand has been drawn.
Events to come. All the financials will cancel their common dividened. Then, the preferred dividend will become suspect. Financials will rally severely on the "news". Notice they're taking WFC down now?
Then, after the rally, the financials fall again....BAC and C are functionally bankrupt.
I notice the SRS is starting to get some mojo back.....not selling off n the rallies. Trouble in the commercial realestate sector?
The government can gig the rally, the "hope" that all will be well. It won't. The transition of misallocated resources to be corrected will be huge. Unemployment will exceed 10%.
The market is like a spoiled child. When it throws a tantrum, all the kings horses and men come with gifts, each one satisfies the spoiled child less and less. The bailout rumours can only keeps us around 8k. Maybe we rally to 8500?
Keep your positions tight. Stay hedged.