BYE BYE FINANCIALS

I now fully believe the market has enough of a catalyst to test the lows and maybe make new ones. There will be more hedge fund blowups on the horizon in my opinion. When a major investment bank (BSC) says basically that they are out of business it doesn't bode well for market confidence. Rumors are around today that UBS will announce more bad news and rumors that (CYN) City National may halt dividend and is facing a near term liquidity crisis. Stay tuned. Will the Fed come to the rescue and just buy all the bad debt?
How about the President of BSC saying things were ok with CNBC the other day? Can we trust anything in here? Do you want to be long finacials in here? He said liquidity was just fine. How come I heard European banks were not taking Bear Stearns business on Tuesday and Alan Schwartz the President didn't know.?Give me a break.

BEARS STERNS IN MEGA TROUBLE

Told you guys we are in trouble. Bears Sterns news just out of the FED RESERVE lending them monies for 28 days because they are in a liquidity crisis. What does that mean! Means they are in bankruptcy on their balance sheet. Lets see what happens in a few, will update..

CPI: Have the bulls returned

Some mildness was reported in the CPI but many are questioning the numbers as it showed decrease in gas prices which raised some suspicion in the number itself. As I have been saying I would love us to rally to the 1378-1400 area on the S&P so I can short and sit back as I do believe the path of least resistance is down. If we do get a lift today next week alot of shorts might cover into options expiration.
I think they are still trying to save the investment banks but who knows how much it will do.
Will be back after the open