Since January 2008 I have never had my short exposure lower than 10%... most of the past 3 months I've had it in the 22-27% range. The one day I lift the short exposure, the market decides to go down 6%. This is the irony of life :)
Down 6.6% on the S&P 500 as I type this, we now are reaching the next support level... once a support is broken (1165-1170) the market falls immediately to the next (1135)
For those interested, if this level breaks, next is 1100 which takes us back to fall 2004. Then it looks to be 1055/1060 level from summer 2004.
Below that you don't want to know... 2003 was a year the market basically went straight up, which means it created very little support levels. There is a little something there around the 960s, and then below that is decade lows, below 800.
Whistle while you work... 2008 is starting to look a lot like 2002. For those of you around in 2002, you know that was a a most unkind period. If you were not around please read on [Jan 18: Bear Market? This is Nothing Kids!]
Wow - just saw Congress did not pass the bill?? No wonder the market just fell off the cliff. So this is what it is to live history. I'd much rather read about it, than live it! Yikes. I still think this thing passes as their will be deal making and arm twisting (look, please vote yes and we'll vote yes on your next earmark) It appears there was so much voter outrage and people want to look like they are on the side of the voters. And too many went that way on the first count. I still predict they'll arm twist 11 votes and get this passed. Dare they mock the market gods?? When (if) that happens let's see how the market reacts.
Ah... just analyzing stocks on their fundamentals is so quaint a notion. Can't wait for 2011 when it comes back in vogue ;)
The current Emergency Economic Stabilization Act vote tally comes at 207 for the plan, 226 against, with one vote remaining. A total of 218 votes were needed to pass the vote. House members can still change their vote, and as a result the number of yes votes did tick a few points higher. Democrats voted 141 for, 94 against. Republicans voted 66 for, 132 against.
This is Madness. Even Constellation Energy (CEG) which has a $26.50 buyout offer from Warren B is falling to mid teens? This sums up the past year.
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