As of today, the markets are oversold short term. There were signs of a bounce early Friday morning, but this light bounce was met with heavy resistence going into president Bush`s speech. His speech left the markets in a blood bath once again. Yes, the overall trend in this market is down, but Friday`s close has left us with a huge support level, so again, I am expecting a significant bounce either on Tuesday or Wednesday. However, due to the human factor and fear in the economy, oversold conditions can last much longer in a bear market than a bull market. One has to be immensely tough in a market like this. This will be no ordinary bear market, this will be more like Japan’s in the late 80’s early 90’s which is still unfolding…

Richard
richard[at]hedgeagainstspeculation.com