A Bottom May Be In, For A Long, Long Time.

All we needed was a little confidence in the market. The government is doing everything they can for us, right? The Libor rate is falling, that must mean everything is getting better. But that all changes with the release of a handful of emails between employees at some of the major rating agencies.

I think must of us knew the credit rating agencies were on the take when it came to this mess. But to hear it, and have politicians grilling witnesses on it, is another story. In my opinion this will start a new run on the hedge funds and we may still have Mutual Funds that will liquidate large blocks of shares at prices that will drive us all down.

For that reason I will continue to stay out of individual stocks. All of the signals for the Indexes show we are in a downtrend. With big sell offs like we had today giving us an oversold market, we can probably count on a dead cat bounce rally. But don't be fooled, we are not only going to test the bottom but in my opinion we will set a new bottom. Luckily we have options as traders to make some money on the move, it just might be tough for some of you to sleep at night leaving double short index trades on the table at the end of the day. Remember, that a lot of traders will take the trade off and accept a lose if any trade is down 8% or so. You pick the number.

So let's keep emotion out of it, trade the trends and ignore the stockpickers!