Ye old faithful market bulls; Its rally time!

[SBR_John]

Govt steps in to make us knife catchers some money on FNM .

We talked about possible bottoming action on Friday. I think there is going to be a positive tone going into earning reports which will be dreadful but priced in. Doubtful a rally will go far with oil at these levels. But putting in a base would be a welcome event.

[pavyracer]

With oil at $150 I wouldn't expect any immediate recovery. This is the time to invest in backing the Mets or fading the Rays.

[Dark Horse]

This all looks very scripted. Bush is now pushing Congress to quickly give the Fed the legislation it seeks.

[mtneer1212]

Not yet....prepare for a brutal day tomorrow --- higher oil and the second largest bank failure in US history (IndyMac bank). FDIC says they have 103 financial institutions on their "problem list". It could get a lot uglier before it gets better.

[SBR_John]

FNM +$4 to $14 a share in the pre. Who was it that wanted to short this one?? LOL course fat lady hasnt sung. Could be a $5 stock by the end of the week in this whacky market.

Meanwhile futures are pointing to a firm open.

[RageWizard]

FNM +$4 to $14 a share in the pre. Who was it that wanted to short this one?? LOL course fat lady hasnt sung. Could be a $5 stock by the end of the week in this whacky market.

Meanwhile futures are pointing to a firm open.

I was the one who was trying to short the Fannys, but that was on Wednesday when the FNM was at 16, it was a good short canidate since it eventually went to 7 something before the calvary came in with a bailout bullet. Now all the shorts are being covered as quickly as possible, which as you thought it would on Friday. I'm not going near any of the Fannys at this point the Fed could say anything at this point and the stock could go either way.

I have been saying that a rally is on the way since July 4. I also believe that the beaten up financials will be in full rally mode. Well they have to be for the market to rally, thats just the way it is. I also like tech.

[SBR_John]

Good post Rage. I'm dumping FNM at the open. I think I agree with you at least been adding to my BAC, C, T and a few others. But I think we go sideways for 1 to 2 quarters. This thing needs some time to heal.

[RageWizard]

I think the market will rally then fail and eventually we will be at 10,600 on the dow, which is the next level of support. If it breaks that then it could plumet to the 9000 area, but I don't see that happening because of the election, and I really think that the housing market is starting to bottom, of course the credit card crisis will start to come to the surface a little more, and who knows what oil will do, so it still looks bad, but I don't care because I can make money when the market goes up or down.

[jjgold]

No Bull Market , every expert agrees with high oil prices the market can never have a nice brisk returns. If we do not get oil prices down the economy for the most part with be just stagnant for many many years to come, high oil prices effect way too much stuff as American rely on fuel.