In my weekend report titled Where Are We in the Greed and Fear Cycle, I mentioned that this market would not mark a bottom until at least one major financial institution or homebuilder went under. Well, this morning we came close in Bear Sterns. Every attempt will be made by our government and better capitalized peers to help bail them out, but they can’t all be bailed out. Some will have to fail and if this morning is any indication it will happen sooner rather than later.
The chart of Bear Stearns (BSC) says it all. Would you catch this falling knife? Anyone short at the open? What a trade that was!
chart courtesy of Telechart
Note: I’ll be back posting more regularly next week.. been hard at work adding new features and products to SelfInvestors