Monday, April 14, 2008

Tax Day

Top Line: On Monday just before the market opened, Wachovia Bank brought more bad write off news for the market to deal with. There are lots of problems bubbling at the surface of the news and the bulls will say that it has not tanked the market. We have been proponents of a bit of a rally in here but it has definitely not been forthcoming. We are still holding out some hope...

We just want to make sure our position is clear, once again. Yes, we were trying to get cute with this rally idea knowing that the move is a corrective move in Front of what should be a major drop in the market. As we go through the next few days of trading, we are going to keep a very close eye on what could be a failure of this rally, what there is of it.

Our thought is that the next Down move will take out the March low on its way to a much lower level. With that said, we are going to close out this evening. The market is a dangerous place to be and we recommend a CASH position with possible reinvestment after we dive to new lows. Do you remember the adage, "Sell in May and go away"? We thought so...

We here in Minnesota are hearing about the possible merger of Delta and Northwest. That is probably the biggest news item, ok, here anyway. Do you need some reading material???

FSI: 76.47 (modest change along with the broader market)

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