Uncertainty Drops Market

The market dropped 3.8% on Monday in another volatile trading day. Uncertainty over details in the Fed bailout plan continues to raise fear on Wall Street. Also, with Fed help, Morgan Stanley and Goldman converted to bank holding companies which presumably will provide better liquidity. The financial sector is very much in flux, losing 8.5% in yesterday's trading. Volatility was again very high, with oil prices seeing extreme fluctations. Oil prices recorded their highest one day dollar gain ever, a $25 increase at their highs.

The volatility in the market today is very high and will likely continue for some time. This is truly a trader's market with price swings of 4% or more quite common. If you can handle the risk, trading the short term fluctuations in the financial sector through an exhange traded fund could be quite profitable. However, that is not the Market Beating Stocks strategy. We are going to hold on our current stocks and sit on the cash we currently have, until we see more strength and conviction in the market.