Sep 24 2008
The bears push back on stocks as the market is unpleased by Congress’ reactions
Yesterday the market held its breath in anticipation of the reaction Congress would have to the proposed bailout by chairman of the Fed, Bernanke backed by the US Treasury of using $700 billion to literally take over a few big name banks in hopes of “saving” the US economy. Apparently, market participants were not happy with the reaction and prices fell for the second day in a row since last Friday when news hit the wires that the whole bailout thing could turn the market and “selling short” became virtually illegal in the financial sector.
Today, the bears will push hard against a sea of uncertain market participants and we all know what happens with uncertainty — prices collapse under pressure. It looks like, apart from a positive news or earnings report of some kind, another day to sell short something, anything really. Just pick one. As long as it’s not in the energy sector you’ll probably be fine though that sector could easily shave off about 4 points per stock today depending on the market at large and the weekly oil inventory report today at 10:30AM est.
In short, take a short position at some point today in any sector where it’s not illegal. Stay legal.
