CHESSNOID

October has been an insane month as far as the stock markets are concerned. Today we had our 2nd biggest day in gains of about 10% in the DOW, Nasdaq, and S&P 500.  Our 1st biggest day also came earlier this month.  Yet, we haven’t had 2 up days in a row.

Fundamentally, I personally don’t think the 3 stooges Bush, Bernanke, and Paulson have made the right decisions in this economic crisis. Nor have they shown confidence or leadership.  I must also trash talk our Democrat Senate and Democrat House for approving the Trillion Dollar Fraud Bailout Bill.  That is a ton of money on top of the trillion dollars we have spend bailing out Bear Stearns, AIG, Fannie Mae, and Freddie Mac. Now we are buying banks with tax money.    I do expect for bailout bills to be presented to the American people soon with the same FEAR tactics they used to get us to invade Iraq looking for WMDs that never existed.

Technically, all the charts are still trending downwards when you look at the 50 and 200 day moving averages.  There are many experts in this area on the net that offer their insight.  Until, I see those graphs flatten out I am staying out of the market.

I don’t think this is the bottom of the market. I do think this is a bear market rally that may last a day, a week, or even a month.  Of course, I could be wrong. For me the focus is managing my risk and protecting my capital. I will definitely miss some opportunities to make money like today, but I will avoid negative returns like the 40% drop off our stock market highs.  I also don’t have to deal with the stress of extreme market down days.