Tuesday, February 24, 2009

Pervasive uncertainty is weighing on lower Manhattan's psyche. Negativity is running rampant in every corner of our world, and unfortunately the sentiment of Wall Street's bankers is horrid; yet as forward-thinkers we are confident the pendulum of psychology will swing. The market is headed for a total whipsaw wash-out second bottom, yet we know all market sectors cannot continue to be painted with the same stroke. We are overweight cash until S&P accelerates through 741 and then whipsaws the most powerful short covering rally of all time. POTC believes the stock market will offer traders an excellent short-term opportunity to go long this week, even if for only a few days. The move could be 20%+ from top to bottom (S&P). We felt this low risk opportunity would come today, so perhaps the second climactic bottom will either come later today or tomorrow morning. We are very confident S&P 741 will be retested within 4 days (by Friday). Treasury Secretary Geithner's March 3rd speech is scheduled just 3 days before the all important monthly Employment report for February (March 6th before market open). We feel eroding confidence in Mr. Geithner's policy is exacerbating the downward spiral. Will anything change next Tuesday? WASHINGTON (Dow Jones)--The House Ways and Means Committee will host Treasury Secretary Timothy Geithner, in a March 3 hearing on the White House's fiscal year 2010 budget proposals, the committee announced Tuesday. -President Barack Obama will unveil his 2010 budget plan on Thursday. The House Ways and Means Committee, which has jurisdiction over tax matters, will hear testimony from Geithner on the plan. -"This year's budget comes at a time of great concern about the economy and presents us with an opportunity to work together to move our fiscal policy in new directions and seek bipartisan solutions to the economic challenges facing American families," House Ways and Means Committee Chairman Charles Rangel, D-N.Y., said in a statement. -By Martin Vaughan, Dow Jones Newswires; 202-862-9244; martin.vaughan@dowjones.com (END) Dow Jones Newswires February 24, 2009 12:07 ET (17:07 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 12 07 PM EST 02-24-09

3 comments:

StockWatcher said...

darn good prediction for today :)
I had a buy order for FAS 2.5 options, but missed it - my target was too low :(
When's the next train?

Anonymous said...

I say we go to 600, unemployment is key, even if credit confidence returned. No one will want to borrow from banks. I see a conundrum with Obama's soending plan, bigger government just ruined his chancs for secind term. Obama is a one term Jimmy Carter kind of memory.
J.P.

The Call Team said...

Next train to Planet Zero~n won't come until we break S/P 741 and then that same day snap back. That's our best forward-looking advice after today's 20% rally in C & BAC, which we did feel was coming. Don't buy any long tickets here is what we're advising, wait until that 741 break occurs.
potc-