It looks official. Bankruptcy is imminent. About 2 to 3 o'clock it finally became obvious to me that the government would not do a bail out. Press coverage started quoting Paulson and others about no taxpayer money. I took it as the government trying to paint the picture of what could happen tomorrow. Essentially your 401k could be down in heartland America but we stood for the taxpayer. Like I said, attempting to paint the picture whether then let it be painted by others.
Tonight will be a long night. Who knows what will happen. The Dow could end the day down 100 or down 1000. You have to have a game plan. If you don't you will be ruled by emotion. Before the market opens you have to know what you will buy if the market plummets and on your shorts where you will cover. It has to become mechanical versus "feel." Feer and greed will be running rampant and you have to control it.
There are all kinds of cross currents. A Merrill deal with Bank of America between $25 and $30 a share, Fed meeting on Tuesday where they could cut rates, talks of a world government banks putting together $50 billion to bail out the next situation. There are all kinds of cross currents so it will be interesting.
Control the market, don't let the market control you!!