Correction phase?

Well it was another great night for Boston sports last night. The Celtics won in an amazing game, Bruins stayed alive in a blowout over the Hurricanes, and the Sox scored a run in the 8th to beat the Rays 4-3. The Celts game was awesome. Big Baby Glen Davis is maturing in front of our eyes folks. Dude is a beast, mind you he is only 6'5'' and is banging with the big boys in the paint. He hit that money 20ft jumper with no time left and did the KG underbite face. Loved every second of it. B's finally played with some energy and smoked the Canes. That cheap shot on Ward at the end of the game was disgusting. The guy basically blindsided him and broke his orbital bone, which may be his eye, but I honestly don't know. Either way, Lucic will go after that guy and tear him apart at one point in game 6, mark my words. Sox continue to just play solid ball. Bay is sneaky unreal. Real quiet, lanky, passive player. Check out the stats and he's looking like the old Manny minus the 72 I.Q. Love his attitude, real humble guy who just rakes up at the plate. Good thing our lineup is stacked because the pitching just hasn't been there yet but it'll come around. 

I didn't get to post on Friday, but I had a couple thoughts lingering in my head from the past week. The dollar is getting annihilated. During the two month rally beginning on March sixth, the dollar is down 7%. I could go over a bunch of reasons why this may be the but the point is, this is a very troubling sign. As I've said before, the dollar is our source of power. The weaker our currency gets, the more purchasing power we lose over our competitors. While it may be nice seeing higher nominal returns on your investments, who really cares if you're being paid back in dollar that are worthless?

The Fed will most likely expand its Quantitative Easing practices within the next couple of weeks. Yields on the 10-yr have been steadily rising since April 15th. The yields on the 30-yr have been rising since the bad auction last week. Don't forget, the Treasury is still going to attempt to sell $2 trillion more in bonds this year. Think that'll happen?

The judge in the Chrysler bankruptcy decided to not allow the anonymity of the bondholders that are not accepting Chrysler's restructuring offer. They feared for their safety, while trying to get the best deal for their investors. The judge said no, so two of the "non-tarp" lenders, Oppenhiemer and Stairway Capital Management, gave up their rights as a bondholders and more or less conceded saying they will forfeit the money they are owed in order to not be a part of this bankruptcy. To fully present the entire picture to you though, the creditors did have to sign some type of special seal which would keep their names anonymous during the hearings, but as the judge said no. It's not like he did this to be a tough guy, he simply said no to the special seal they were applying for. It's always good to see both sides of the story even if you don't necessarily agree with one side. To me this sounds like things will get messy. Remember the outrage over the AIG bonuses, well that is only the tip of the ice berg.

Did today mark the beginning of the dead cat bounce correction? Possibly, but with the government changing the rules everyday you really never know these days. Tons of news flowing out of the market every single day. It's tough to figure out what exactly I should write about.

I'll start off with one of the most startling clips I've seen in some time. I won't go into detail because the video speaks for itself.

Next, we had Meredith Whitney, who has been absolutely spot on with her analysis since the beginning of the crisis, come out and say that the stress test and rally in bank stocks is a complete folly and has been manipulated by the government from the get go. Great way to instill investor confidence wouldn't you say?

I am obviously pessimistic/bearish about the long-term outlook for this economy and country as a whole. While I seem to be an ultra-bear on those fronts, it's important to detach yourself from the big picture and try to trade this market. This is a great traders market if you have some guts and some cash on the sidelines. It is VERY risky out there, but by keeping yourself confined to risk management, capital preservation, and financial staying power, there will be many opportunities for investors.

For the sake of honesty I wanted to share this.

With the benefit of hindsight, I started my short position a week early and paid dearly for it. I got beat up pretty good last week, but continued to add to my short positions to lower my cost basis. Looking back, it was more of an emotional entrance into the shorts rather than a well thought out decision. I am so bearish on the economy, government and market, that sometimes I'll make an emotional decision rather than being rational. While keeping my macro theory in tact, I need to focus on the current market cycle and not the end of the road. It's important to keep track of your investment decisions to better analyze in the future, what catalysts made you either enter or step away from the market at certain points.

Good luck tomorrow and don't forget the popular opinion is rarely the profitable one.