Weakness is present in every pocket of the market. After opening up around 50 points, we've faded again. I would still be taking off short side bets here as 6 down days in a row seems a bit extreme. Once things clear up FDO and GHL are going to look okay, but patience seems more appropriate right now.
What does the government have left? Not much. Their actions thus far have failed to "prop up the economy", fill the gap in GDP, or stimulate demand. We have more headwinds as well. Demographic conditions will prolong the downturn. Housing prices continue to fall and consumers are making big changes in spending habits.
A long slow downturn and recovery is ahead. The situation has fundamentally changed and significant time is required before things get better.
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