Bottom is showing up slowly
It’s been a long way down since last update on this blog. Market got hit by bad news one after another. Last couple days we have Fannie Mae, Freddie Mac and IndyMac’s collapse, I am thinking these might place a period mark for this run down. As the death of BSC starts the final battle of mortgage crisis, ends it with 3 major mortgage players is as perfect as a book can be. The take over by Uncle Sam surely gives government more control on this mess. Letting the careless and greedy mortgage lender to pay the ultimate price is the only way to fix this housing market issue, yet the main focus should focus on the oil price which will impact the econamic as a whole: you don’t have to own a house or carry a mortgage to drive a car. Also, energy price will impact all consumer products as the production cost and shipping cost are going to rocket.
Back to the chart, DOW keep posing a nose dive, but RSI and MACD show slowdown on down side movement. Bears might just blowing out the final strike and try to smash the first one or two over-excited bulls. OE week is coming with major ER in the same week, there is no need for bears to place their bets on the table at this moment. JPM and MSFT’s ER may send out comfortable signal to the market then start a rebounce. Going with short is clearly not a good idea at this moment, start setting up some long positions on ETF might be good, the safest way, of course, is cash.