Volatility? No Way

On days that don't end down, you can bet that it sure looked like a down day until the final hour came around. Yep, more volatility. As if we didn't have enough lately already, options expiration week has added a little extra kick to it.

There's simply no way to even guess what each day will bring. Are the waves down complete? Do we still have the final wave to go in this series? All depends on how you view the charts. I'm seeing and reading arguments both ways. I still think we have one more ugly move down in the near future. A rally to suck people in would make sense to me and then have the trap door spring open.

What's going to happen to the auto industry? Sure sounds like they're on their own at least until the new administration moves in. The republicans are dead set against bailing them out so nothing can get passed and we know Bush won't go along with anything.

Personally I'm on the fence. I don't think they should be bailed out. They have such horrible business models, why should they be salvaged? So they can continue to barely get by? Let me ask you something... A company the size of General Motors is having one bad year... yes ONE BAD YEAR and they're on the verge of bankruptcy??? How can you run a company that sized and be that close to devastation just because of ONE BAD YEAR??? It's not like they're saying "We'll be out of money a year or more from now". They're saying WE'RE OUT OF MONEY NOW!!!!

How may different models of cars do they need to produce? Why have Chevy, Pontiac, Buick, GMC, etc? Consolidate to just a few models. How many dealerships do you need??? Toyota and Honda have about 1200 each. GM has over 5000. This is why I think they should just go bankrupt. Ford and Chrysler aren't much better, but if one fails it'll strengthen the other two.

But on the other hand, many, many hundreds of thousands, even millions of jobs are dependent on the auto industry.

I don't envy the people having to make the decision on what to do.

We'll see what Wednesday holds for us. My call is for a rally on the S&P to 950 up until Thursday afternoon and then starting late Thursday or Friday the big drop begins. Target of 720-750 on the S&P very quickly.