The market is looking down about 16o points currently, that puts the Dow near 7000. Can the market hold this level? Dont know. We have to let it play out. We have to defer and respect the action that is front of us.
I don't know if this is the low or not, too many people are betting that it is, but there simply is no change in direction to state otherwise. Too many headwinds. But whats positive is that the real bad news is getting out there so it can be absorbed. Nationalization was the elephant in the room that had many people spooked. That idea is slowly filtering into the market community. I don't think the market would be down as much if it weren't for the ugly GDP figures that hit the tape at 8:30am.
The banks have continued their downward acceleration as I write this post. This may finally be the market recognition of the fact that the common stock in many of these banks are close to worthless as more ownership shifts to the government. It isn't nationalization, but as close to it as its going to get....It may not feel like it... but this is positive news...Stay Tuned.
I cant wait for Ken Lewis to make his usual CNBC cameo appearance stating everything is kicking on all cylinders.
Feeling vindicated at the moment.
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