What, Me Worry?

COMPLACENCY:

"A feeling of quiet pleasure or security, often while unaware of some potential danger, defect, or the like; a feeling of contentment or self-satisfaction, especially when coupled with an unawareness of danger, trouble, or controversy."

In the words of Alfred E. Neuman: "What Me Worry?"

I am simply amazed at Wall Street's reaction to the recent plunge in the markets. It is like Wall Street has already forgotten that the DOW just dropped 1500 points. Only on Wall Street do you get a 1500 point plunge...an 800 point bounce because of an ineffective Fed...and everything is A-OK. Maybe the DOW goes back to 14,500 like certain pundits say. Maybe everything is A-OK. I just needed to let you know that I believe the technical condition of this market is still suspect...and that is being nice...in spite of the recent pop off the lows.

FINANCIALS are still a mess.

Did you see the orgasmic response to the BAC-Countrywide deal? Did one person even question the possibility that BAC did not invest $2 billion because of their liking of Countrywide but maybe...just maybe, BAC is one of the banks Countrywide tapped for billions in a credit line. Maybe...just maybe, BAC was on the hook for billions and just trying to protect their own investment. Countrywide's stock is now below the price when the news came out.

UTILITIES breaking down badly.

7 out of 10 stocks still in bad technical shape. That is how deeply oversold the market was.

I am forever an optimist but I am more of a realist. I would like to see a little more proof than what the market has given. High volume drops and low volume rallies do not thrill me. JUST A DOSE OF REALITY MY FRIENDS.

Gary Kaltbaum