After trading +/- flat all day, the DJIA rallied 530 ponts in the

last hour on the (widely expected) announcement of Timothy

Geithner, President of the New York Fed, to be Secretary of Treasury.

This is another example of outlandish volatility and the late run-up

has no fundamental basis. The outlook remains bleak.

DJIA  +494  @  8046

S&P     +47  @   800

Oil       $50.43

I find it hard to believe that the market is willing to swing in the last hour to the treasury secretary announcement.  I suspect that the market is reacting to the bailouts and the potential for a bailout for the auto industry.  

In my view, people in Congress need to find some courage and make some hard decisions.  One such decision is to let the auto companies go into bankruptcy under Chapte 11.  This doesn't mean that they each will close up shop.  In fact, they would remain in business and continue to manufacture cars and trucks.  The key component is providing some assurance to buyers that their cars will be serviced and warranties honored.

I suspect that you agree that we have yet to reach bottom.  In my view, the bailouts are only prolonging the fall and will likely make matters worse over the long run.

Investors are very emotional now and not thinking clearly.  The markets are psychological and dependent upon the mindset of the investor.  If the investor thinks the market is headed down, it will go down.  If the investor believes the market will rise, then, typically, it will rise.

At the moment, I am waiting for the market to settle and reduce the amount of volatility.  Once settled to a degree, I plan to buy.  To me, this is a great investment opportunity.  Knowing you are in the business, I would appreciate your thoughts of what is going on.  Thanks, Kent.

Tom

I imagine that the government won't give them any money without them filing chapter 11 or at least doing the equivalent and shuffle some management around.

Now that's the truth.  The current market conditions are FAR from rational.

Today's market is totally irrational.

I don't know when the best time to buy will be,

but if I'm pressed, I'll pick 7000. When you re-enter,

pick a broad based fund.

8-)