Monday, March 2, 2009


1) Today I was reminded of how many times the SPX bounced off 800 in January before breaking through in February.  We saw our first test of 700 this afternoon.  It is hard to tell if there were serious buyers or we ran out of time.  I anticipate when/if we have a significant/lasting break through of 700 it will be after more than one test of the level and will occur overnight. 

2) Today our desk largely traded from the short side.  However it was not a home run day for me or others by any means.  It seems the majority of money was made shorting quickly after the open.  The weakest stocks did not follow through low in the afternoon.  Below are charts of AET and POT.  The thin gray line is the S&P future.  AET and POT were two of the weaker names to start, then did not make new lows as the SPX tested 700 later. 

3) This never ending news of the bailout/more bailout for AIG and C and others reminds me of a certain movie scene.  "That's as good as money...those are IOUs."