Tuesday, March 3, 2009

No Bottom In Sight

I was wrong yesterday. What looked like capitulation wasn't. Market fell down more.

The picture was interesting. Market swallowed bad housing data without big problems. Then it ignored Be Bernanke. Then I was looking with big interest how market reacted to Tim Geithner's testimony before Congress committee. It looked like market liked it. Dow was at one point 80+ points higher than yesterday's close.

And then something happened. Market went down. And down. And down. And only half an hour later CNBC gave us the reason: our President, in his infinite wisdom, decided to say something about stock prices. First he said that stock prices are not among his first priorities. But of course, state of retirement savings of most Americans can't be among first priorities of administration, can it? Then he said that in his opinion, stocks are currently underpriced and it should be good time to buy.

Of course, market reacted to the first part and ignored the second.

What we see right now reminds me of October. Even local bottom is hard to reach. Even Turnaround Tuesday doesn't work. Doom and Gloom.

Sold SSO position today at a small loss. This is too hard. Let's wait for better opportunities.

Full disclosure: at the time of publication author had no positions in SSO. Positions can change any time.

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