I am going to be out of pocket today taking care of some family business. Futures are high this morning, but that hasn't meant much lately.
I no longer have any illusions about this market. I am painfully aware of what the indicators are saying, but this is no time to get complacent or think things will return to normal soon. The markets are telling us that there is no competence in the management of our global economic system. We got a .5% rate cut yesterday and it was thrown back into the face of central banks and the Fed:
Global gamble: the fightback begins...
It was the longest day in the battle to rescue the world's stricken economy from the financial crisis which had left banks teetering.
Sean O'Grady, Economics Editor, reports from Washington
Thursday, 9 October 2008
The world's central banks and governments appear to be running out of ammo in the face of a financial crisis that has been intensifying by the hour.
Even the unprecedented global interest-rate cut of half a percentage point yesterday had only the most limited effect, while the IMF called the credit crisis "the most dangerous shock in mature financial markets since the 1930s" and warned of a recession in the UK and elsewhere next year.
The government action was, as one analyst summed it up, "like throwing a pistol at the problem once you've emptied the chamber".
I am hearing this kind of talk from many of the respected traders I follow on the net and I agree with them. We may see some relief, but I'm now a seller of short term strength at this point. There's been too much damage to take excessive risks with our TSP funds. There appears to be yet more posturing going on by our leaders; as Tom posted this morning:
"Today the SEC is lifting the temporary ban that they placed on short selling specific equities in mid-September. As you can see, if their plan was to stop the markets from being pushed lower, they failed. It has been one of the worst 2 to 3 week periods for stocks that I have ever witnessed."
This strategy has failed in the past. History has told us that, and yet our leaders tried it anyway. They gambled with our financial futures and we lost. In any event, this could buy us the time we need to find an exit should one be in stox. I'd like some time to regroup in G and allow the markets to settle down at some level. I can only hope that if I see strength in the morning that it doesn't evaporate after I hit the sell button.
I'm selling strength. That means on volume and breadth. It may be today, it may be tomorrow, but that's my plan. I will be no where near a computer most of the day today so I can't post during trading hours, but I can monitor the markets on my cell phone.
Good Luck to All!
