SORRY TO SAY IT

Just as I predicted, today's rally was short-lived. By midday we lost all our morning gains and by the afternoon we headed towards negative territory. My prediction was spot on, so I hope you got out of any long positions in time and used that money to buy QID. I find it rather immature that some investors including Jim Cramer are calling bottoms in the market already. This correction is far from being over, the bull mentality Cramer has needs to change before anything gets fixed. Just see how wrong Cramer is, and has been in this video.

So...we may get short-term bottoms along the way, but we have yet to test the 2004 lows, and if the Fed doesn't cut 50bps come Tuesday we will be testing those lows this week. Technically, it looks like we're heading down on Monday in the S&P500, the NASDAQ has a similar pattern but is showing a bullish divergence. Has tech been oversold? Perhaps, but picking up some QID on Monday shouldn't hurt you. I'm thinking of getting into some SDS though. Anyways, have a good weekend...and I'm sorry to say it, but I'm bearish in this market.

1/27/08 UPDATE: I'm starting to get mixed feelings about Monday. With so many earning reports coming out tomorrow, you need to be careful when picking a side...you don't want to be on the wrong side of the fence. The markets can turn on you at any moment, you're probably better off just holding cash going into Tuesday. Remember, holding cash is a position too!