CHESSNOID

The market has had negative news come out and it seems to be worse than the previous news the day before. It’s funny that the investors react to it in an usual manner. Bad news has them buying. I can’t think everyone is a contrarian trying to do the opposite of what most people should do. I remember George Costanza from Seinfeld tried to follow that philosophy and good things started happening to him. He eventually became an executive with the New York Yankees. I don’t think that will work in the markets long term but you never know. The market has had 4 up days. I would like to think that the market has bottomed but that doesn’t agree with the news coming out.

Since I am all in cash, that means I have missed 4 up days in a row in the market. If I felt the downtrend has flattened, I would literally start buying the stocks I like. I just don’t think we could have recovered in 6 weeks when the housing bubble took 6 years in the making. Fannie Mae and Freddie Mac are announcing their biggest losses ever to date and the market reacted accordingly and dropped for a brief moment. Then reversed directions once they heard the federal reserve is planning to cut interest rates again in the near future and they are on watch to react accordingly.

Google’s stock found support and finally bounced up.+8.67 points to close at $472.86 and after hours pushed up another $1.34. Google basically lifted the Nasdaq into positive territory today. The markets have been up for about 4 days in a row and getting a little overbought. Even though it dipped below the breakeven line it still closed up. We will probably see a ceiling soon and have the indexes reverse down. If any news good or bad comes out that make investors react in a nervous way, then we may have a substantial sell off as they try to lock in their recent gains.