Much of my trading day is spent intermittently chating with trading friends.
One friend in particular draws me into lengthy conversations so we jump over to a private chat room. In one of those conversations, she asked "What can turn this market around?"
Well, it seems to me that the market, on average, grows at a rate of about 8% per year. It really wants to go up!
That in mind, one has to ask "What turned the market so sour?"
The S&P (broad market index) and the Dow Jones Industrial index have not been at these levels since 1997. Many parts of the market were in a confirmed rally just a week ago.
" ...but no, its curious that every time the government says 'we're stepping in because otherwise the market will collapse' they step in and the market collapses?" - Ann Coulter quoted earlier today
- FAS/FAZ, Financial Sector: FAZ, up 9.67% today
- ERX/ERY Energy Sector: ERY, up 12.24% today
- TNA/TZA Small Cap Sector: TZA, up 11.7% today
- BGU/BGZ Large Cap Sector: BGZ, up 9.39% today
All these bear funds are in huge up-trends. All would be good to buy and maybe even hold for a while. Compare those gains to alternative investments: Savings Accounts, CD's, Real Estate. We are sitting on a huge pile of gold. Well, gold was down today -- this is better than gold!