Well it is nothing new to see the government botch up a perfectly good opportunity. There was not full disclosure on the banking bailout plan and the stimulus package had more pork fat than a cheap grade of bacon. The wording today was that “private money needed” to bailout banks, we are going “stress test” the banks to see if they can survive first. Haven’t they already been failing the stress test? No white knight in shining armor came today that the world was looking for. At least the media was making the stimulus package and banking bailout plan as the solution to our pain.

The reality of the world’s banking problems and economic crisis is that this problem would likely resolve faster if left up to the market forces without intervention. But the government’s attempt to so often the blow is probably extending the amount of time before full recovery. So for weeks now we all have been trained like Pavlov’s dogs to look to the government to bail us out and when the package is not above expectations, stocks start selling off. Not a surprising scenario. Knowing all about how to invest stocks can only make one a successful day trader.

The stock market sold off today 4.62% on the Dow30 and probably overreacted to the downside but this gives us second helpings on stocks we either missed to get in or want to make money again on the long side. All stocks were either sold or stopped out today with only one remaining position and that is a short on JPM, JP Morgan for a short swing trade.

The housing stocks got whacked the last 2 days, as the pattern has been for at least 18 months. PHM, TOL, DHI, LEN, CTX, KBH and BZH got whacked. No trade here, just an observation.

Oil prices has drifted slightly lower to $38.16; USO stopped $28.33. Totally mishandled the oil trades on this last helping on the long side.