Friday, February 20, 2009

Lots of Pain

The bear-market rally I've been looking for hasn't come yet. In fact, its mostly just pain out there right now. Some stocks are just getting shellacked out there. The banks are facing nationalization. The positives right now are in relative performance, to give you an idea of how difficult it is. For some reason, the street is giving tech stocks a premium that it wasn't when the market hit lows in November. The biggest reason appears to be that many have a ton of cash on their balance sheets, and their businesses are holding up relatively well.

Relative performance seems to be the key phrase now. Preserve what capital you have left. Be aware that when the market sells off like this, we're probably going to see some big snap-back rallies, so don't get stuck to far in on the short side either.

If you're waiting out the storm, that might be the best approach. If you've got the itch to bargain hunt, I again reiterate take small positions, and don't let them get away from you.

That is all for now. Lets hope we don't get any of those "weekend government plans" this weekend.

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