As several have pointed out, the last several rallies were caused by drops in the Fed overnight fund rates. These have all been short lived rallies and the dow dropped just as much over the next few days as it had gained the Monday of the rally. You could try to take adventage of this ‘trend’, but as usual, by the time you realize the trend it’s over.
There is little wiggle room left for the Fed in dropping rates, and although printing money is still an option, it won’t be forever, and we’re likely in for more bad news in the coming days then good ones.
From what I gather we’re in for a steep drop in stock values. Although predicting a bottom is futile at best, the sentiment here seems to be that the gathering storm clouds are looking increasingly frightening and lightning is about to strike, possibly more than once.
I for one am going to stay out of the markets for the time being. Yes, there’s a possibility that I will miss out on a prolonged rally, but quite honestly, in my opinion, the chances of that are extremely slim.
