Late Stick Save That Failed...We Are in Trouble

Yes, the market tanked today and tried to stage a dramatic recovery late in the day.  It was sharp and it was breathtaking and put some doubt in this trader's mind about the impending break down of the major head and shoulders pattern in the S&P.  In short, that attempt failed.  But like many trading days before us, this event was forestalled by immense and possibly fraudulent rumors of Ambak bailouts to FED cutting intermeeting interest rates.  CNBC got into the act by doing their good citizen duties by aiding and abetting in the "pump".  Well today, the forces that be, could not over come the obvious, and for which I have been ranting about for months: WE ARE IN A RECESSION AND IT WILL BE WORSE THAN ANYONE CAN EVER IMAGINE!

Today's jobless numbers cast no doubt in anyone's mind that we are in a recession and all the warnings that came previously about this and promptly ignored by the main stream media, the market pumpers, and the financial community is now in fact a REALITY.

Already there are talks of depression and doom and gloom.  Why not?  It is sensational and this sells stories and TV ratings.  It's funny how CNBC (CNBS) all of a sudden features bearish stories and commentators.  Yet, one could argue that this might be the sign that the end is near for this bear market as people are turning increasingly bearish.  Yes, that's true but not in this case.  There are more than comfortable amount of "experts" out there that are pounding the table for the investors to buy the "dips" that bottom is near.  Until this noise and farce goes away and then maybe I will consider getting more bullish.  

We defended the all important 1300 level on the S&P 500 Index today.  Much concerted effort was made to finish above this level but alas it failed.  So we are in the precipice of a major market meltdown.  Market crashes do not happen near market tops.  They happen when the market is weary and beaten down.  I think we are near that event.  I have called for a market crash and technically we got one, albeit in a slow drawn out fashion.  But when one considers the magnitude of this credit crisis unrivaled since the 1930's, you can imagine without much effort that no matter how much stocks are down, they do not represent a good value right now.  I see further declines in stocks, especially credit sensitive techs.  We will continue to see multiple contractions to the likes not seen for a while.  

We are in trouble.  FED, Treasury, and Politicians are walking around with thumbs up their asses.  They look scared and they act as if they know not what to do.  I don't blame them.  But unless banks are forced to mark to market their secret junk they are hiding, this will not end.  The ludicrous cries for rate cuts will not do any good as evidenced by the current strings of rate cuts.  It is that we must restore trust back into credit markets.  We will not achieve this unless the government and the regulatory agencies stand up to the plate and say enough is enough.  Time is definitely running out.  If for a minute the FED or others have any back bone, they must make the tough choice to force the crooks in the financial community to come clean.  

Did anyone catch Angelo Mozillo's testimony today?  I almost puked.  Did anyone listen to Cramer's ludicrous rant today?  Thank God Erin cut him off.  Yes, we are in trouble because the powers that be won't do the simple thing to fix this problem.  Restore TRUST.

See you next week when the market is poised for a pounding.  Yes we might rally but that will be sold into and will be weak and short lived.