Market Outlook on Quadruple Witching day

Today is Quadruple Witching day for Options to expire for the end of 2008. Markets oversees are down but the news is that the Auto Industry bailout will be announced by President Bush. Ford Motors and GM stocks are up in pre-market about 10%. 3 Month LIBOR rates are at a new low at 1.50%. Having said that, the past 2 days have been down as I had predicted they might be and I don't see that they will rise today. Is it possible, yes. But going into the first week in January I see the markets having a very difficult time. So being on the Short side is the only strategy that makes sense for this timeframe. I see the markets rising near January 20th inauguration of President-Elect Obama. Just the magnitude of the proposed stimulus should help give hope in the markets.

I still own all my ETF Ultra Short shares of the S&P500, symbol SDS as well as TZA, which is a small cap ETF Short play.

Since many will be away I want to wish everyone a very Merry Christmas. Remember holidays with family can be healing. And everyone needs to be healed this year. If you haven't given to any charity this holiday because it has been tough, reconsider giving to your local Food Bank. They can really use the added help this year. God Bless.