How dare Goldman Sachs downgrade Citi and GM 3 days before the end of the quarter. The conviction sell list mind you as opposed to just the sell list. I wonder what the reaction would be if they upgraded them ! The wailing and gnashing of teeth....oh the irony of it all !
I notice the house passed the 300 billion bailout bill by a veto proof margin. I would counsel and real estate shorts, of which I am, to not panic. This bill will not only NOT help housing it will exacerbate the problems, GUARANTEED !! The fighting over the spoils by special interests inside the house and senate will ensure most of the money will be wasted and misdirected to put it mildly. It's actually quite simple, if you're long Fannie or Freddie or believe in the FHA this is the panacea the market needs.
Funny how simple the solution is to the housing problems. Let the market work it out plain and simple. Always has, always will and to tinker and manipulate only extends and exacerbates the problems.
I have been reading some items where the bulls are arguing that there is enormous amounts of cash sitting on the sidelines waiting and looking to jump into the market. These same bulls are arguing that we are at very oversold levels and you need to buy. I would instead counsel EXTREME CAUTION as panics and I don't use the term loosely crashes occur from very oversold levels. Do not fall victim to the hope and pray crowd.
Some charts of interest coming a little later today.
Good speculating to you all and always remember that "a speculator is a trader who made a mistake and will not admit it".
Long 6 units Currencyshares Japanese Yen ticker FXY @ $88.55 stop at $91.40
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