Monday, October 27, 2008

What is the market waiting for?

With the prospect of more rate cuts on the horizon (realistically only 4 left before 0%), the market continued to seesaw, finally going red in the final hour of trading. However, the drop wasn't very significant. Such daily volatility resulting in so little real movement causes me to believe that we have a ways to go before we're out of this recession.

What I'm looking for is a good 700-800 point one-day drop, where from start to finish, the market was consistently in the red. This will be such a huge signal to everyone, that rich, nearly all cash position investors, will be forced to quickly and greedily invest.

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