Bear Market and Bear Bank Account

Two items to think about this post:

(1) Bear Market - I believe this week will continue to see the market decline, but not as badly, as investors began to see some discounted values out there. However, with the European Central Bank poised to raise interest rates, which will shore up the Euro and cause the Dollar to fall, we will also see oil prices continue to shoot upward.

Additionally, financial stocks are still being targeted by both investors and rating agencies as the fear of more write downs to come applies continuous downward pressure on those stocks.

(2) Bank account - For regular readers, you are all aware that this month has been financially very bad for me. After tallying up everything up to today (with 1 day left in the month to go), I am about $1,100 above budget on spending. I need to be very careful next month to ensure I have enough funds in my bank account to cover all my bills.

Just as important is my continued plans to recover from this month. Tomorrow, I will reset my budget to be in line with rising costs of food and gas, while also setting aside money to pay down debt.

Bearing down

So far so good. The market is definitely reacting to all the negative economic news. All major indexes are down. My Dow and Financial Sector shorts are working out well. If we see another 300+ point drop tomorrow, I may cash in, instead of being greedy.

Feeling bearish

Today was the first time since I've started investing and trading that I truly felt bearish about the next 6-months in the economy. With oil fluctuating wildly, the Fed spinning inflation out of control, and basic material prices shooting up, its tough to believe that the general market is anywhere near its bottom.

Sure, I still believe there are some sectors out there that could do well. For instance, technology companies, specializing in infrastructure and communications, will benefit greatly from widespread travel budget cuts.

However, financials will continue to suffer along with the construction and medical industries.

Maybe the Fed will say something intersting for the economy at the conclusion of its meeting tomorrow, but its doubtful.

It's a wait and see game. And so far, we've been waiting and seeing the market go down.