SDS and General Market Update

The house of reps. did not pass the "bailout" bill. This has obviously created some panic in the market place.

This has been very beneficial to the SDS trade I posted a couple days ago. The short-term model is not oversold on that yet, so stay tight there.

Also, this break of the extreme panic low earlier this month creates a situation that I think could be very dramatic and cause a waterfall type (near vertical) decline in the stock indexes taking them down several more percent over the next few days. At that point, based off of price pattern form and current sentiment, I believe there will be a large reflex reaction in the market causing it to rise sharply, probably for a couple months or more. However, realize that this is still a bear market and this does not mean the worst is over.

For trading purposes I think this will be an excellent trading environment for making money due to extreme volatility in short-term swings. I would suggest anyone reading this blog follow the short-term trades I post on this blog as they will take advantage of these swings.

Pete