A Roaring Welcome For President Obama

At least the inauguration and events were wonderful. Wall Street certainly wasn't. Dow down over 300 to close below 8000.

In my last post I had two scenarios and "A" won. The weakness in banks over the long holiday weekend dragged the markets down and there was no interest in buying. Citigroup is now at $2.80 a share, down 20% again today. In 2007 the stock was at $50. Bank of America is at $5.10, down almost 30% today, again it was a $50 stock at it's peak.

Folks, things are bad. England and the US are both hurting. The list of issues is long. The list of valid potential quick fixes is short. I think it's finally setting in that this thing is going to have to play out.

Since my friend asked me where I'd put some extra cash right now on January 8th, the markets are down 10%. My answer of "your mattress" was the right one so far.

The wave structures are still murky. A bounce maybe? A rally? Or just straight down to test the low of 7500 on the Dow? Or beyond?

The wave structure that appears to be the most likely has this down movement taking us to 6300 on the Dow before the 50% rally that will follow. But there's a little nagging issue with that structure in my mind and eye... We'll see.

I wish President Obama the best of luck in his new job. He'll need it. It's a shame that he's coming in at such a bad time. If we were near the end/bottom of this he could pull us up from here. Unfortunately we're not near the bottom yet and after a year or so he could end up being blamed for not "fixing" everything.