“”””“The DOW will plunge on Monday”
Why?
The IndyMac news was being talked about all day. It was no secret.”””””
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The Indymac story was out as much as three days ago, I spend the mid morning to 4pm trading the stock market, after I get my construction business going for the day, anyway, the Indymac story came across the live DowJones newsfeed three days ago. Heck, three days ago the stock was trading at 70 cents, down from $40 a year ago, everyone knew this baby was toast.
So, I agree, the fact that it made the “lamestream” news today will not tank the market Monday. In fact, I would not be surprised to see the market bounce Monday or Tuesday. The CBOE Volatility Index is getting up into the area that has marked prior bounces.
The fact that the DOW came 125 points off the low of the day today shows you that shorts are nervous and will be looking to cover, which will cause the bounce. Maybe a rally lasts a few weeks, maybe a month or more, but it ain’t the bottom yet, not by a long shot.
IndyMac is nothing. It’s one bank.
Fannie/Freddie’s health is 100’s of times more important to our economy.