I need to blog where I went wrong, and my new direction for the future trading. For 2006-2008, my trading wasn't perfect, but it was easier to some extent than this past week. The major problem with the last 8 days is I was "betting" a higher market, but I didn't have conviction over the long haul, as my 2009 predictions show. I will return back to my basics, and that is trade in the direction of the longer term conviction, but trade in/out of stocks depending on the extreme levels.
I am of the opinion some of the news today may in fact stemmed the decline to turn into a rally. Its good to see that the Obama administration is following the Bush administration by coordinating announcements to benefit wall-street market makers by turning the market a day before options expiration. For once, this benefited my account, although 2 hours earlier would have made a huge difference. If the market rockets higher Friday, I'll miss somewhat out, I panicked out somewhat at the bottom Thursday.
"Good" News today (it is bad news in actuality...)
Senate Approves 2nd Half of Tarp (350 Billion)
House Democrats unveil $825 billion stimulus bill
Obama to Use Up to $100 Billion of TARP on Foreclosure
Obama Adviser Urges Global Financial Overhaul <--- MAJOR news if Obama includes globe for Financial system vs US domination. May advert the "China" scenario for taking lead of world finance
US Government to back 100 Billion more for Bank Of America (This I believe is in ADDITION to TARP, see Mish's Blog entry)
More "bad" News
California faces insolvency within weeks
Foreclosures soar 81 percent in 2008
Intel reports huge fourth quarter loss
2008 worst for European car sales in 15 years
European Central Bank President Jean-Claude Trichet comments after ECB 50 BPS cut
Moody's cuts JPMorgan ratings one notch to "Aa3"
GM to forecast 1.5 Million less car units for 2009
Indiana State Legislature proposed currency for state "backed" by gold <--- Absolutely bizzarre, and I thought illegal. I am pessimistic of US dollar long term, and for a state to propose backing by gold is unreal Video to congress about how spending 1.2 Trillion dollars of Taxpayer money to support wall street in secrecy is not appropriate. This is $4,000 for every man, woman, and child in the USA. I wonder, if Clinton has spent 1.2 Trillion "in secret" to lend money to various companies his administration saw fit, if it would have been tolerated.