The House of Representitives did their best to approve a “Bailout Bill” that will, as advertised save the economy from the brink of collapse.  However, this failed to provide any sort of confidence for the market and stocks dove towards new lows.  Our Bear Market has been able to take out 50% of the gains from the low of 2002 thru the high of October 2007.  We’ve been able to do this within one year.  I do not see this turning around any time soon.  This market is not healthy, too many will be wiped clean trying to go long this market.  Monday’s session will be interesting to watch, will we get another Black Monday?

If I were new to the market I would be reading as much as I could.  That would include Jesse Livermore,  William O’Neil, Brad Koteshwar, Stan Weinstein, Darvas, Loeb, etc.  The most important thing to do is to study and study!  These markets are not healthy for any type of long term gains.  Remember, all the greats gave up on day trading even Jesse Livermore.  They all saw the writing on the way by holding long term positions and not short term.  It’ll be important when we do get a new bull market that you’ll be able to build long term positions for huge gains!

Keep on the sidelines and wait for the storm clouds to pass!

Market Speculator

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Last 5 posts by Market Speculator

• Quality Growth Stocks Lead the Way as Stocks Advance in Mixed Trade - June 2nd, 2009
• Re-Inflating the Bubble; Inflationary Pressue Lifting Stocks - June 1st, 2009
• Treasuries Begin Their Decline Striking Fear into the Stock Market - May 28th, 2009
• Follow on Twitter and Seeking Alpha - May 28th, 2009
• Sipping on a Cup of Coffee Deciphering Whether or Not The Stock Market is About to Make a Leg Down - May 11th, 2009