Talks uncertain, market slides in after hours trading

Stock indexes rallied nicely early in the session, but started to falter late in the day when what looked like there might be some road blocks to congress passing the bailout plan. The market is more interested in the minute by minute changes in the news and not so interested in following technical indicators. This will change. These bailouts always have a way of getting through eventually. I would expect the market to rally in a sigh of relief once the plan is passed. Everyone seems to be expecting the market to have a relief rally. I’m not so sure how long a rally will last. Trends are still down and I will still trade accordingly until the trend turns up. However, I am taking a long weekend off starting Friday, and will probably not post again until Wednesday. I know I’ll miss some big moves while away. I also might miss getting whipsawed.

Meanwhile here are a couple of good articles on the current financial mess: Blame Fannie Mae and Congress For the Credit Mess and How the Democrats Created the Financial Crisis.

One thought on “Talks uncertain, market slides in after hours trading

  1. Watch Representative Brad Sherman (D-CA 27th) talk about how some members of congress were threatened with martial law and how they were holding Americans’ 401(k)s hostage claiming a “no” vote on the bailout bill would crush the DOW thousands of points. Martial law would nullify Congressional power, and Americans would lose all Constitutional rights.

    “Sherman, Brad [D – CA] “The only way they can pass this bill is by creating and by sustaining a panic atmosphere. That atmosphere is not justified. Many of us were told in private conversations, if we voted against this bill, that, on Monday, the sky would fall and that the market would drop 2,000 or 3,000 points the first day and another 2,000 the second day. A few Members were even told that there would be martial law in America if we voted “no.” That’s what I call fear mongering – unjustified, proven wrong. We’ve got a week; we’ve got two weeks to write a good bill. The only way to pass a bad bill: Keep the panic pressure on.”

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