What a disaster the government has put us in. The ignorance. They kept saying we were not in a recession….what do you call then having to bail out Fannie Mae, Freddie Mac and AIG! Back on April 22, 2008 President Bush said “Were not in a recession” this was such a lie trying to blind side the general public.

Now with the proposed $700 Billion dollar bail out we will have diverted the toxic debt from the balance sheet of these companies but their future revenue is still broken and weak. The burden now is on the tax paying public. This will take years to pay off.

The euphoria we saw on Friday was just that an over reaction on the market. Do not be fooled by it. Yes, the financials gaped up in morning and short selling was not permitted yet the price kept coming down after the gap up???? Ask yourself…..Should the financials be going up or down with this news? The market was artificially hampered with the inability to short financials.

My outlook for next week is that the broad mark may rise about 5% but then sellers will come in to get out of loosing positions. I did try to get into the UYG on friday and missed it by $0.95 when it gapped up. I think the SPY will try to run up to $130 level where I would short this market. Were still in a dowtrend and the volume on Frida was less than the previous 4 days. Were heading back downt to retest $114.

Now I missed this run and will wait for the pull back. It’s too risky to trade the financials now. Instead I would buy GOLD stocks and the GLD. Investors will hedge their investments with gold.

My current holdings are : AZK, FCX, GLD, NNVC, NTES, PWAV, SDP, VLNC, WNR, JNJ, WMT, CLNE.