Tuesday, September 9, 2008, 10:17 PM
Today the S&P 500 stock index lost more
than 43 points, or 3.4%. This was a harsh repudiation of the US
government bailout of Fannie and Freddie over the weekend.
Actually, this bears a bit of explanation.
In the chart below of the S&P 500 I have marked three arrows. At
the purple arrow, I want you to note that the market was selling off
quite severely, and then, magically, at 11:00 it turned around and went
powerfully in the other direction. At the time, I watched that and
thought to myself, “Huh, somebody knows something I don’t.”
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