You decide. Here is the scenario...
We find ourselves in a wedge with the market consolidating it's previous losses. As the week unfolds the market becomes increasingly weak. Friday now and we are down another 100 pts on the DOW- threatening to confirm a break of the wedge to the downside, thereby confirming the downtrend. With the market resting on it's lows at 3:20 in the afternoon market participants are closing up shop and calling it a day (it's Friday after all)...BUT WAIT...Gasparino here comes on CNBS and SPECULATES that there COULD MAYBE be a bailout of mortgage insurer Ambac this upcoming weekend. Nevermind the fact that for a couple of weeks now they've been going to bail this one out to no avail. But...the market rallies 250 pts(!) in the week's final half hour of trading.
Hmmm...make up your own mind but to me this smells very much like outright market manipulation. Regardless, I'm not pleased as my very green day turned slightly red.
When you're a bear the whole world is against you and you have to be prepared for these endless stick saves. Once again the bulls snatched victory from the jaws of defeat. The reality is that we are going lower. If not right now, soon enough. Maybe we bottom here so that everyone can get complacent again. If so I'll get out of the way... but at some point this game is going to end in tears and I'll be there selling everything that moves until the market is driven into the abyss.
It's not that I'm rooting against our nation's best interest. The fact is the trash needs to be taken out. The whole house stinks. Until we take out the trash, all of it...I will remain a bear.
