A Break for the Bulls

Markets were able to overcome the negative employment data for the second time in a row as investors seemed more focused on the bailout and stimulus package resolutions. The three indices have moved back to an area of importance. If the November lows are to hold as support with a higher degree of probability, the indices will need to close above these key levels after any bailout/stimulus package news is given. I don't want markets falling victim to the "sell the news" effect. Fading strength has made short-sellers rich over the past six months; if bulls are to regain any territory, they need to stop that pattern of profitability.

As investors look to the bailout/stimulus, the irony grows thicker. As the financial mess began to unfold to the American public, our government was shouting from the rooftops how corporate greed and lack of governance led our economy into something not seen since the 1930s. The government was aghast at the laissez-faire spending practices and unnecessary extravagance of corporate CEOs and the boards of directors that oversaw their activities and decisions.

When greed was good and no one seemed to care, government didn't do much to stop it. Of course, there were the few who shouted about their voice of reason, only to go unheard by the American public, but that tends to be worthless rhetoric as it appears as a "told you so."

Americans are not looking to government as the "told you so" body of reason, but rather as a first line of defense in righting our economy, our vision for the country and our future. The irony is that government has seen this as an opportunity to further individual interests, even as they scream at CEOs for doing the same thing.

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At the time of publication, Schumacher was long QLD, SSO, DIA and GE, although holdings can change at any time.

Chris Schumacher is a financial trader, speaker, writer and co-author of Techniques of Tape Reading. While Schumacher cannot offer specific investment or trading advice, he appreciates your feedback; click here to send him an email.