Monday, September 22, 2008

Bears are alive...

Well....DOW dived almost 400, wiping out most of the gain on Friday.
As I predicted, bears worked together to take down the market by doing as follows:
- Bumped up oil price (up 15%)
- Attacked week links, homebuilders, retailers, REITS  etc.
- Attached tech sector (most of them have good balance sheet, they are not so related to credit market).

As I was concerned, many people don't understand what Paulson is doing. On the top of it, our President came out looking so puzzled and confused totally killing our confidence.  He got me scared...  So everyone who wanted to get out of the market tried to get out.



SEC is decisively clueless.  All they had to do was to reinstate the uptick rule, not banning shorting financial stocks.  And there is nobody watching oil futures.....many say it was due to option expiration caused the spike....I don't think so.  Get speculators out of oil futures (but leave enough to keep the market liquid).



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