Friday, October 10, 2008

Market note

This is a bit of a throwaway but today should have seen a real market bottom. It sure looks like it anyway. Over the next three months the market should be healing up as credit lines are reestablished. Further really bad news could allow this bottom to be retested.
Margin calls may do the same thing.
The really good news is that we went from a bullish environment as little as three months ago to the bottom of a bear market. This means that the recovery however dragged out will generally be with a bullish background.
I have lived through long protracted bear markets that dragged on for months and years. you want to be spared that. And let us hope that congress does not screw up the recovery.
Maybe politics are now working on internet time.

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