This Bear Issues a Stearn Warning!
14th March 2008
Just before the market opened today news broke that Bear Stearns (BSC) was having some liquidity problems, but the FED was going to help JP Morgan (JPM) with a bailout. This could not be good news I thought, but the market on the other hand, actually opened up.Its too bad I was watching CNBC at the Gym, because you actually had about 15 minutes before the market reached the same conclusion. Plenty of time to buy a few puts or put on a Bear Put Spread. In the end that news took out half of Tuesday’s big gains. The stock market seems to be back on its downward journey, dropping another 2% today.
We’re closing in on the low end of the current trading range again. This time, I would not be surprised if support does not hold. Next week could be an eventful one.
JD
