Market Outlook for Feb. 26, 2009

The market has been in a very tight range of late. The VIX currently is at 44.67 and has retreated from the over 50 readings of 2 and 3 days ago. Volume the past 3 days has been higher than normal and the Put to Call ratio has abated down to 0.84 from highs in the 1.20 and higher intraday peaks of the past few days. The fact that we are still holding is encouraging. Also Fed Chairman Bernanke has also stated in testimony before Congress that they might reinstitute the Uptick rule for Shorting stocks which previous SEC Chairman had ended the rule taking the wrath of many investors like myself who called for his head.

I continue to believe we are not heading lower in the Dow and S&P 500 Indexes but my belief has been tested as well. I continue to hold TNA and SSO, AAPL, F and other favorites. It was good to see Ford climb back up over $2.00 the past few days. It had been as low as $1.67 the past few days so it is a nice recovery.

If I had available cash to invest I would wait to see if we can hold these levels before committing more cash to stocks. I still am hopeful we will finish the week neutral to positive.