Oil is flyng and the NY Times reports that a conservatorship may be formed to save FRE and FNM. I just don’t see how his will be viewed as good news as it only highlights the absolute destruction of our financial system. FNM was founded after the great depression to help home buyers and now it is being bailed out. As I said last night, the entities can be saved but probably not the shareholders. It will be interesting to see how the market views the news.

I titled this post 11000 because that is where we have the potential to trade today if the market throws in the towel. If we should break that level, look for Black Monday chatter to gain big traction and a move to 10,000. I know I sound big time gloom and doom but you know I’m a bear and you know I’ve been waiting for a capitulative move so we can get this party started to the upside. Until this happens ,we are only going to see bear market rallies. At the very least it will be an interesting day.

Didn’t most of the pundits say this wouldn’t happen yesterday?

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