Another Tough Day...

We had a weak jobs number (although not as bad as it could have been) and continued uncertainty about the "bad bank" (otherwise known as the original plan of the TARP). That led to a sell off on the street. I am writing this right before the close and the S&P is having a hard time staying above the technically critical 850 level. Of course, a lot of that has to do with the heavy weighting of financials in the S&P.

As I have said before, the financials are not investable companies. They can be traded but NOT invested in with any heavy commitments of capital. If the government has to take these comapnies over - which is not out of the question - you will be wiped out. Trades are fine, but all long term investments should not be made until there is some clarity as to how the financial crisis plays out.

I am watching president Obama right now and I am thoroughly impressed. I am impressed that he takes the Wall St. executives to task. That is what leadership is all about. He is asking for accountability from the people who need to be the most accountable. While the Wall St. executives are asking for government money, they are still bonusing themselves outrageous sums of money. I am excited that Obama is not just going to be "one of them". So far, he has shown more leadership than any president I can recall, Democrat or Republican. Very impressive.

Tomorrow will probably set up to go lower and we should be prepared for that. Possibly getting short the SPY or QQQQ or DIA will make for a good day trade. Until next time, stay low risk..