201. Let's Ride the Coaster Again

Way back in Post #185 I consulted my squeaky toy and forecast postiive sailing in the market through January 22nd, except for 2-3 bumps. Today was bump 2, maybe three. I didn't follow my Scents to get out before Option Day on the 15th because of the possibility of good news ahead. Some came, like the victory in Massachusetts, but this news also rattled the speculators who have run up the health stocks and other benefactors in the short-run had the Health Care Bill passed quickly. You see, the market is all about UNCERTAINTY and PSYCHOLOGY. Whereas uncertainty was coming closer to its end in respect to the health care mess, it now must continue until we see what happens with Brown's vote or whether the Dems accelerate the vote on the bill. Hence, UNCERTAINTY again. However, tomorrow I look towards people regathering their common sense and see this as a positive sign. Yet, there was also news today that China is still trying to slow down their economy, which would include becoming less obliging with their loans to other countries. Does one country stand out there as China's biggest debtor? Right, us. Now this isn't good news. So, which way will the market go tomorrow? Next week? Next month? Depends on whether the news media can report facts rather than opinions. My forecast is very rocky, very bumpy. Volatility is going to rise from its somewhat dormant state. Coming with it will be days to buy (short-term) and days to bail (Short-term and long-term). I don't expect that the Health Care being forced back onto the right track will have any effect when the government continues to implode the market with dollars and debt. This is what we must keep an eye on. This is what China is focused on. This is why things are not looking good longer term and you should have your worm can ready to bail out your boat before it sinks. When? In 3 days I'll have a clearer picture -- or my red squeaky toy will. Stay tuned, or bail out now for the upside is limited, whereas the downside is unknown.