The activity in the market has really become quite a spectacle. The volatility is tremendous, and its amazing in the fact that we're one event from the whole thing falling apart, and at the same time, we could see the market shrug a lot of this off and move higher.
The news of the hedge funds being in trouble makes me bearish the most. They control a lot of money, and most of it is moving rapidly. I hope they are aware the role they play in keeping our market afloat.
I think from a fundamental side, there are reasons to be optimistic, but the credit and mortgage problems could be too much for the rest of the market to overcome. Big brokerages like Bear Sterns (BSC) and Goldman Sachs (GS) are so instrumental, and if they run into problems, the market could fall apart on fear alone.
We'll see what happens. I'm moving very slowly, if at all. But it is important to watch whats happening.