Monday, February 1, 2010

Dead Cat Bounce

Are markets going to drop further immediately or will we see a "dead cat bounce" first?  I think the latter.  There seems to be some evidence that the U.S. government is manipulating stock market futures by bidding them up through intermediaries in the after-hours market, so don't be surprised if the markets habitually open higher and then fade.  (This is apparently legal, but worrying to me.)  And beware of the DCB which may last a few days before hitting the pavement.  A note regarding my earlier call on QTWW: it's a BUY at any price less than a buck, but remember - you didn't hear it from me.