Stock Market Analysis – 10-03-2008
The bailout bill passed, but the market didn’t seem too thrilled afterwards, sending a positive day down into the red during the final couple hours of trading. There are several things you could try to take away from this. Either the market already priced in the successful passage of the bailout (buy the rumor, sell the news), or maybe people just don’t believe the bailout will do much to help. If the latter is the case, that means that most of the big money left in the market is actually smart money. I talked about the five stages of grief a few days ago, and maybe we’re closer to stage 4 than I thought. Now that doesn’t mean I think we’re at the bottom yet, but maybe I’ll have to adjust my target price of the bottom up a support level or two.
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