Jumping in and swing trading on the short side when the market is in free fall is dangerous because when capitulation comes the counter trend rally is swift and powerful.
The feds paid trillions to bail out the automakers and the big banks. Since both industries now rely on the government for bailouts both are happy to go along with the politicians, no matter how absurd their plans.
Despite widespread belief inside the Beltway that the U.S. economy is on the mend, reality is that it's going to be a long time before U.S. markets return to normal if there is such a thing anymore.
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