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.
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.