Recap

An ugly day across the board as decliners led advancing stocks 4-1 on the NYSE. Utilities and oil got murdered thanks to rising interest rates and increased oil inventory. The Dow, NASDAQ and S&P were all down over 1% with volume on the heavy side. The failure of the Dow and S&P to break out to new highs is very disturbing. Its been 4 sessions in a row where an all time high was at hand only for a sell off to occur. The Dow and S&P both look like double tops not to mention Shanghai and Bombay. Cash and inverse ETFs are king until we witness a decisive beakout on the Dow and S&P.

Is this a joke ? The founder of MySpace trying to buy a 25% stake in Dow Jones & Co. WTF !

Bear Stearns Hedge Fund collapse is going to have far reaching consequences. This is only the tip of the iceberg.

I cut down on several of my long postions and raised cash. I believe we may be entering a bearish period. The increased volatility is usually present during tops and bottoms and this hardly looks like a bottom. If 1490 breaks on the S&P I will be loading up on SDS.