Capitulation?

Dow down 300 points today. S&P at 700. Dow volume almost 50% higher than average. Lots of doom and gloom in all media. Is it capitulation? I'd like to see deeper drop on even higher volume, but beggars can't be choosers.

Tomorrow's action will show us what's really happening. Maybe. This is not a global bottom, but we might have a kind of local bottom, like we had on Nov 20. Maybe

Made couple of buys on this drop: started position in Research in Motion (RIMM) and bought Ultra S&P500 Proshares (SSO). I wanted to open RIMM for some time, it's a terrific company with clean balance sheet, growing profits and great management. It's medium to long term investment, although if it shows big profit fast, it will be sold immediately. Bulls make money, bears make money, pigs get slaughtered. SSO is bought for pure speculation. I think we'll see some bounce this week.

I still think we have some way to go down before we reach bottom. We need accept Great Depression 2.0 before things get any better. But local bottoms and bear market rallies happen during bear markets and we need to make money whenever we can.


Full disclosure: at the time of publication author had long positions in RIMM and SSO. Positions can change any time.