12:20 PM
The market went down again yesterday. SP almost touched the Jan low. NAZ has been lower than Jan low. Dow is getting close. So it is in the virgin of breaking all time lows.
This morning, Fed injected $200B into the financial system. It offered 28 days loans to the banks. The market took it as good news, and went up 250 pts at one time. Here is some of my thoughts:
1. It happened on 2000 recession. The market went up huge before the next leg down.
2. The injection of this huge amount of money is in order to make the banks still functional in events such as stock market crash, or other financial crisis.
So, I believe there will be further very bad news coming in financial mainly. The key to the event is to monitor the market reaction, and measure the depth of this reaction. Sell to any strengths shouldn't be any issue here. Mainly short the finances sector, and indices.
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