The government did the totally expected move of keeping the automakers on life support. What is another $17B going to do for them? Extend the pain and uncertainty they hang over the markets head. So they will survive till march. Is march within the time line they expect consumers to start purchasing their vehicles in? This is going to end FUBAR. Instead of handing out tough love, I believe they enjoy the discomfort and misery their every move brings the taxpayers of this country. How in the world could such an intelligent group of people get it so wrong? It's as if they are trying to force the worst case scenario to happen. Whatever, just play the game with them to the best of your ability. Although I will caution that things are about to get a lot worse.
After studying the charts tonight I have a strong feeling we have seen the top of the December rally. If you must maintain any long positions do your self a favor and hedge your bets. 913 on 12/16/2008 is where the S&P is going to have topped out for the December rally when this year is over. Sometime between 12/22/2008 and 1/09/2009 my charts show the S&P trading down to the 750 range. What does this mean for the broader indexes? Somewhere in the neighborhood of 7400 on the Dow and 1300 the Nasdaq. Take action now. Christmas is going to be worse than expected.
Retail shorts are where you want to be. GPS, BBY, BBBY, ANF, RL, HD, LOW, TGT, PNRA, KSS, TIF .... to name a few.
Things are worse than they appear. Good Luck.
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