Hitting The Skids

Yesterday, the markets tanked big time with the Dow being down some 800 points at one time before recovering. Even crude oil sinking below $90/barrel couldn’t offset the downdraft.

This confirms my suspicion that no one entity or government is powerful enough to stem the global credit crisis, which was based on a built-up process of leveraging and accumulation of tremendous debt, which now has started to unravel and affected all corners of the world.

Since an anticipated market rebound after the acceptance of the $700 billion bailout plan has not materialized yet, you could argue that many have come to realize that the plan may have no impact at all. While the jury is still out, apparently the world community is not buying it either, hence the lack of confidence and continuation of the sell off. So, once we all realize that the bailout plan is not working, why don’t we just cancel it and not waste the money? (humor attempt).

It’s no surprise that our Trend Tracking Indexes (TTIs) slipped deeper into bear market territory and are positioned as follows:

Domestic TTI: -9.81%
International TTI: -19.00%

Right now, doing nothing and watching this debacle from the sidelines is the way to go.

About Ulli Niemann

Ulli Niemann is the publisher of "The ETF Bully" and is a Registered Investment Advisor. Learn more
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