Yesterdays test points out that Friday’s low was not the bottom, but a bottom. For now we are content to wait for: 1) more earnings numbers, and 2) the bailout package to be put int action. When the market moves beyond its panic gyrations it will be time to be more active. So for now we are waiting for a 940 to 1100 trading range on the S&P to be defined by; first a close of 940 or higher. At the moment we are holding our reduced long stock positions and remain short T-Bonds.
On the political front, at least we have the debates behind us. Probably the best line of the night was one given before the debate in an interview of John Vogel of Vanguard Funds, he said “the majority of American people who are complaining about politicians, Washington, and the market, should look at who they voted for in 2000 and 2004”.
Have a good day.
7:52 AM CDT