Fear

Now that the short squeeze has done its effect, a sell off and a serious one at that, may have begun yesterday.

The past four Fridays the market rallied into the close and I would argue that if the market is not down 200 points into the close, then that would show signs of strength; since that would be a sign of non-capitulation. And since the news is skewed currently to allowing an "orderly" bankruptcy for GM and Chrysler, then I don't believe that traders are going to be very long this weekend. Additionally, oil didn't follow this market higher and has reached new lows on this sell off, which would imply that it, ie oil, knew that bankruptcy is looming for the US automakers.

Look for an afternoon rally that fails. But realize in sum the market has rallied 1300 points from the Dow low, so profit taking isn't unreasonable.

ALSO COMMERCIAL REAL ESTATE, IYR, HAD A REVERSAL DAY SO I AM GOING TO ASSUME REALITY IS NOW THE KEY WORD IN THE MARKETS AND TO FOLLOW ACCORDINGLY!

ADDENDUM: TODAY IS OPTIONS EXPIRATION ON A BUNCH OF STUFF, SO UNLESS ONE KNOWS THE PRICE AND VALUE OF A PURCHASE, STAY AWAY FROM TRADING TODAY.