Wednesday, August 4, 2010
Getting Super Bearish
I am starting to get super bearish again. After just sort of ignoring the market for a few weeks as we bounced around in what I think is a meaningless counter trend rally, I think we are getting close to the markets completely falling apart again. In other words 1010 on the S&P would be taken out. Economically, things appear to be hitting the skids. The market seems zeroed in on the Fed meeting on Tuesday which could be a big sell the news event. I still think the market could have another bounce left in it back towards 1140 but tonight I have been feeling like we are down to a few weeks if not a few days before this thing rolls over. The market cannot keep ignoring the economic reality for very long. Right now bad news is being bought because it increases the odds of government action. That is not sustainable.