A wild week

The kind of volitility we saw last week is only good for day traders. The CNBC hype is for long term investors to ride it out. That is only true if you expect a long term bull market. If you think the stimulous package is going to work, they are right. If you think we are headed for a depresion with the stimulous package only causing inflation, then prepare for a bear market.

It doesn't make sense to be long in the market in the face of a long term bear trend in the market.

Some of you, most of you, should remember a comment I've made as a way of measuring major shifts on Wall Street. I said one way to know with certainty as to the direction of the market is to monitor hiring/firing at Wall St. firms. They always hire before the end of a recession in anticipation of better times; and they always fire just prior to a recession in anticipation of slower times. Thus, what can we conclude, in spite of mini-rallies, from the following?

These are the headlines.

25-Jan-08 10:28 ET
In Play
Goldman Sachs says plans to cut global workforce by 5% - Reuters (199.75 +0.55) -Update :
25-Jan-08
In Play
Morgan Stanley, Lehman Brother and Bank of America are eliminating about 1160 jobs

If the big boys are preparing for a recession, shouldn't you.

When a ralley reaches resistance I'm buying puts. ...and gold stocks. Precious metals have been taking a hit in the last few weeks. It is because investors expect a slowing of business using gold in there products. Lessening demand means lower cost. Gold and platinum are both commoditiies and investments. The commodity aspect has weakend with slowing of demand for electronics.