September 17, 2008

Market Capitulation

Gun to head, this is the bottom.

They didn't cut rates, but they did issue new Treasuries because the Fed needs money.  And no, there's no inflation, because banks are deflating hard.  We may come out of this alive, who knows.  (Though for current retirees who had money in "buy and hold" safe financials-- or anything else, for that matter-- well... there's always Social Security.  I know, I know, I know.)

They also stopped naked short selling, which is huge.  I thought that was already illegal?

For you technical traders:

djia 9-17.JPG

If we hold 10827, then that's a double bottom and we go to 12500, maybe even 13000.  By January.  Not sure how that's possible, but there it is.