Recap

Game Over. Its over for the bulls. Strong start and a horrid close. Everything was thrown out the window. There are no buyers. No place to go hide. The bears are coming after everyone. Subprime is taking down the whole economy. Liquidity is finished. Bernanke is not going to save the markets.

Ok enough with the nonsense. The above were not my thoughts. Its just some of the things I've been hearing. People are fearful. Investors are running for their lives. I smell opportunity. Sure subprime is a problem. But its going to affect a small portion of the economy. There is a good chance we enter a bear period. Than again we may continue our uptrend. Who knows....

Right now the Dow has some support at the 13200 level. That is likely to be taken out and we will probably be seeing 12600-12800. It would be a good idea to have some cash and put it to work once the market starts a broad based rally. Financials look extremely cheap here. GS MER BSC MS are trading like they are on the verge of bankruptcy. If we get a strong rally, I woulddn't be surprised to see the aforementioned names lead the way.