VIX has bounced back strongly, fear has picked up, most bears have covered shorts.....this recent market weakness feels different to me than anything so far since March lows. Some decent technical damage has been done and again the down days down volume far outpaces the rally efforts.
Market hard to rally when President is in trouble and Wall Street attacked. Now all this IMHO is bringing new level of uncertainty to businesses. 74% of office furniture dealers polled by MMQB do not see pick up in order pipe line.
SO Monday (AGAIN!) our poster rally day was said to be bully because now it looks MAYBE Bernanke gets confirmed, big whoop....and it faded into close and was weak ass volume.
Stats show Bank Lending has been CONTRACTING at worrisome levels, near $600 Billion since crisis began, and going into 2010 this contraction continues along with consumer credit, 7 million plus not involved in economy, bank loans contracting, home values crashing, standards tightened....too much uncertainty and this is back drop for a V SHAPED RECOVERY? or any recovery I might ask.
Obama's plans call for mostly short term stimulus, banks aren't lending, don't have to......where are the jobs going to be created? where is the sustainable economy?
Other than ill advised BAILOUTS, and back room deals, what's the plan for the economic revival?
Duratek
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