Pull back time

7/21/08

Market perform fairly and mostly bearish as the volume is drying up as last few days rally up. Also, all major indexes are formed Doji star reversal pattern which indicate its due for a pull back. As I said last few post, this is not a "V" shape reversal rally. Market got bottom because of short covering rally only, there has no commitment any buyers participate in this rally. It is very easy to see this pattern. Also, AAPL,AXP,TXN...all lower guidance for the rest of this year. Well, it is very common sense to expect all companies are going to have tough time ahead as consumer is struggling with higher unemployment, higher cost of commuting, higher cost of food...gee...there are lots of difficulties... I am still remain very bearish. There is nothing to say, market is going to gap down big tomorrow. Good luck. Oh, do not buy any financials for long since they are all not performing. They are all lack of cash in hand. And FRE is going reduce getting load/mortgage from banks, it means no more mortgage for residential and higher mortgage rate is coming. Housing price will further drop more into next year for sure. Look like government rescue plan cannot bring back people confidence about both GSE companies. Extend the credit of FRE,FNM but FRE is unwilling to get loan from banks. What is this? ....I am laughing to all Bulls. This is Bear market. Any rally is bear market rally and be consider it will fade away. Let see how market turn out tomorrow.