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Market Recap: GM News Was Not Really A Deal, Dow Low Cleared Late and Down She Goes

November 20, 2008 4:12 PM

yellowcautiondowncropped.jpgWell, I said near the open that holding the Dow low by pennies seemed a bit fake. Then there was swirling news about a possible GM deal on a bailout and the market spiked. Then, once people realized that there really was no deal, that temporary pop didn’t last. I just do understand how they can possibly let GM go under in with this economy, but whatever.

Anyhow, I smelled a late selloff and said “my first, second and third guess here is a closing rout”. Pretty much what happened. No deal on GM was the last straw. The 2002 SP low has cleared as well. Once 768 cleared the selling really got going into the close. The 2002 Dow low was 7177. We may bounce above that, but the more everyone talks about “dow 6000″, the more it may come true. I said before that I agree with Cramer in that if GM fails Dow 6000 is probably a given. Amazing they would let this happen.

Anyhow, I am going to take a break from watching the markets on a daily basis until this settles down. I just have no interest in reading about bad news every day. It simply isn’t fun. It also is not fun trying to catch a plunging market and trying to pick a temporary bottom for a short covering rally.

I have said about 100 times that almost all, if not all, of the huge moves we have seen have come in bear markets and never last. Shorts cover on any whiff of a possible bottom and it goes crazy. I also said that history has a weird way of repeating itself in the markets and I would side with history.

Anyhow, good luck with this if you watch it on a daily basis, you will need it, lol. I will be on once a while, but daily isn’t going to happen. It just isn’t fun anymore and I started this site for FUN.

Written by Tom@StockBlade.com · Filed Under SP Futures 

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