Why I wish I was right.

Hey everyone,

So trading in Japan opened about an hour or two ago, and I can't tell you how worried I am. The Nikkei - Japan's major stock index - is down over 3% in that time. The dollar is up about 1.4% and mortgage rates today are less than that of the same day last week - but the market is still plummeting.

Right now, the European governments are scrambling to save their banks and the word on the street is that they may need an emergency rate cut to keep their banks alive. The problem is that a rate cut from Germany doesn't help the French banks or the English banks or the Spanish banks or the Portuguese banks. Unless all the individual countries band together and all cut their rates, Europe is going to be a disaster.

I know my prediction for the S&P bottom was dead wrong - it breached 1,200 and has continued to stay below that level - I am sorry.

Do I think its going to get worse? I think its very possible that we'll see the S&P breach 1000...and continue to go lower.

However, even if the S&P doesn't breach 1,000, I do not expect the US economy to be in the midst of a recovery for at least a year - and I think that's being generous.

What the trading strategy?

Sell the days that go up.

Do not buy the days that go down.

-Mansij Hans, E.I.T.
Member, Intigril Capital Management.