The Creditella Outbreak; Yet We're Ready to Rally this Bear, Ma’am

Sunday greetings to all! The uncertainy and pessimism has never been higher, and since many heavy-weight money managers are 50% in cash we see the S&P either rallying through 1,000 or breaking 800 by Wednesday's close. Ironically, here is an example of the fear level from the kings of hedging, half in cash?!?!?!: http://www.fiercefinance.com/story/cash-king-buyside/2008-10-15 The genius of Cohen and Jones must be respected, but please realize hedge funds are rarely in cash since their strategy calls for being dynamically hedged, for example: convertible arbitage, merger arbitrage, event driven, distressed securities, equity market neutral, and equity long/short, the focus of brilliant mathematician Jim Simons of Renaissance Capital Hedge Fund: http://en.wikipedia.org/wiki/James_Harris_Simons When we see the most astute minds of investment finance overweight in cash, we believe the market will not remain hosatge in this trading range for long. Look for the S&P to either explode up or implode down ahead of Thanksgiving. With the G20 summit over, 13F filings behind (http://www.sec.gov/answers/form13f.htm), and Presidential election results now fully discounted, the market is ready to move violently up through S&P 1,000 or down through 800. We wrote about the bear market rally in our last piece, and as gloomy a scenario we will offer in this article, we stick to our thesis nonetheless of a technical bear market bounce beginning on Monday, November 17th through at least Wednesday the 19th. What happens after Thanksgiving through New Year 2009 remains unclear, but we will revisit all factors related to Psychological Financial Fusion (a timely balance of qualitative, fundamental, and technical analysis focused on short-term opportunities) next Saturday night. Here's a very important look at the S&P dating back to just post WWII levels. Please understand that long term charts make better sense during times of complete panic: http://finance.yahoo.com/q/ta?s=%5EGSPC&t=my&l=on&z=l&q=c&p=&a=&c= Notice the powerful move in the S&P from under 400 in 1990 to 1,500 in 2000. Also notice the pronounced double top break down in 2000 and 2008. Microsoft's Windows software and many other computer related technologies/innovations spurred a tremendous rally from 1990 through 2000, agree? If you study the S&P chart, the sprint up from 1995 through 2000 may be a attributed to billions of consumers logging on to the information highway and transacting business from former non-capitalist nations, i.e. Soviet Union, Eastern European countries (Poland, East Germany, Romania, Ukraine), India, and the Chinese Dragon cannot be discounted. Do you feel the internet super highway and chip technology will enhance... --------------------------------- If you would like to receive this and future posts and market analysis, please send an e-mail to Psychologyofthecall@gmail.com and make sure that your e-mail client will not consider messages from that address as spam.