Dec 8

Over the weekend: laid off factory workers did a sit in to get money they were promised, another bank went under, Chris Dodd said that Rick Wanker should go and Chrysler should merge, and Obama said he doesn’t want the bankrupt 3 to go bankrupt and he wants cars to run on unicorn kisses. Obama also outlined a plan to build more bridges and roads, the Tribune may file for bankruptcy and is trying to sell the Chicago Cubs, New York Times is trying to borrow $225 million to keep going, Toyota is talking about cutting capex by 40%, 3M is cutting 1,800 jobs and is asking workers to take vacations or unpaid time off, the huge hedge fund Citadel is closing some of its Asian operations, and Anheuser-Busch InBev is cutting UK jobs. Boy I can’t wait to buy a stock with this news.

Is anyone else worried about Chris Dodd telling any company what to do? I think Rick Wanker should go but I don’t want the government to do it and especially Chris Dodd. Dodd took more money from Fannie and Freddie than anyone else in Washington. He is one of the main reasons why this subprime mess happened at all. I wouldn’t look to him for great judgment.

I think the market is going to continue the bad news is good news rally that started Friday. I don’t believe it for one second. I think the shorts are getting squeezed and will drive the market up. The low volume on Friday and the low yields on T-Bills do not make me think the market is turning up. I’m going to be very interested in seeing how the market reacts to 900 on the S&P 500. That has been the top of the range and if we blow through 900 we will have a serious short squeeze on our hands and the market will rally hard. I will look at a rally as an opportunity to sell some of my long positions and add to my shorts.