Washington, At Least Something is Happening
The fight is not over, CNBC’s Cramer bascially says that you have to be a seller out of the box this morning and there are a a lot of short-sellers who share the belief that a crash is imminent. They may be right but….
For us, while we have expressed our belief that some thing should be done differently on the Stimulus Package and the so called bank rescue package, ie Tarp, the fact remains that something is being done, and that is good. To be fair to Bush, there wasn’t much he could do when the wheels came off in late September 2008. The crash was accelerating and you just had to let it play out. And so it did, and now we are getting plans in place to go forward. There will be hiccups, we have had some minor ones already and I’m sure a big one lurks somewhere down the road.
As we have stated previously this period since mid-October has been a wide base with a capitulation point on November 20th. From a sub-cycle and short-term oversold standpoint, long-term investors have been cautiously building long positions during this period. Interestingly enough time has gone by that the proverbial shoeshine boy has learned how to short the market. I have to relate that on Tuesday I was at a lunch counter eating a burger with Fox News on the screen, and the guy next to me felt compelled to tell me how he had learned how to short stocks. I asked him when he had started shorting, he said in October when the bear market started. My question was “which October, 2007 or 2008 ?”. He just stared at me. You know his answer.
The EMA ETF Fund NAV was 999 at yesterdays close. The leverage level was increased to 1.49 yesterday.
7:45 AM CST