What the last two days remind me of.

The last two days have been like that day when the genius govenment decided to cancel shorts on financial companies. THe market rallied much harder than it did yesterday that day though but the financials rallied about the same amount. The next day, the market tanked back down. The next few weeks, we saw financials at their lows of the year. I wonder if the same happens now. THis also happened after they did their first bailout plan. Rally one day and then go down. Seems like same story different day here. We should be at the lows by Mid February, if the pattern continues and I am not sure why so many people are so bullish here.

I posted about this last night: Parallels to the third week in September '08?

I do not understand how so many people can be a Bull or a Bear. Ever since we made the low in November this market has consistently gotten better at grinding up both Bull and Bear alike. It is taking us to the edge of breakup and breakdown and then abruptly changes directions, sometimes all in the same day. All of us have been watching the melt down of the global credit market and believe that this can only get worse and that printing more money is only added fuel to the fire. Yet the market hasn’t fell off the cliff, defying all logic or reason, and a lot of us wonder why. How many times have you heard it said that this is a traders market? Well it sure behaves like it’s a traders market. I could be wrong but it looks like there is no investor left in the market. No one buying anything to hold for the long term, every thing is just a short term trade. So that now that everyone is a trader we just go at Bull against Bear and which ever side that seems to have the majority thinking they have the best tech trade pushes the market in their direction until they start hitting their target. Then they start closing their positions and taking the opposite trade. I am probably totally wrong about this but it sure acts like that’s what is going on.