Fear is definitely in the market here but I think we might bounce. The bounce wont be heavy as I think the money to be made in this market for the next few years will definitely be on the short side PERIOD.
The main problem is is the greed and use of leverage in the market. One of the main reason we are in this bind is that leverage only works well when you are right! All the Investment Banks, hedge funds and traders were leveraged up to the wazoo that now that the market has turned against them they are losing money that is not even there!!!
People like Cramer has been telling people to buy GS and MS for months and that July lows were the absolute lows for the financials. Well Cramer investors how are you doing? How is his four Horsemen of tech, I will tell you, they are crushed. I think APPLE will be a $25 stock and GOOGLE is at its best a $150 stock.
Wachovia is up 10% after hours on a rumor that they will merge with MS. Oh ok, to me WB is going below $5 and so is Citibank. Yep go ahead and buy MS or WB on the news, just dont let me know :)
Tomorrow should be very very interesting. I think if gap up it is a given short but if they flush us early I would look for a push down to 10,500 and then some buying should come in.
Listen most of you might think I might be crazy but the DOW is going to 7500 in 24 months, mark it down. No saving up period and the Nasdaq will head to sub 1000. It is not going to be pretty but hey I am ugly and I am married to a beautiful woman so maybe the market is thinking the same, it wants a beautiful wife!!
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