Where Are the Buyers?

Play for a bouce? Just know that there are more shoes to drop in this multi-footed market. Next up are the insurance companies, laden with their ghetto-centric commercial real estate portfolios and related securities.

This destruction of capital and asset base will result in more credit downgrades. I don’t see how companies will be able to raise capital without much pain and consternation. Forget about the debt markets. They’re currently broken and not scheduled for repair.

I spent all day yesterday blowing out of all my long positions, with the exception of stocks like  Verizon Communications Inc. [[VZ]] ,   Wal-Mart Stores, Inc. [[WMT]] ,   The Procter & Gamble Company [[PG]] ,  Abbott Laboratories [[ABT]] ,   Archer Daniels Midland Company [[ADM]] ,  Entergy Corporation [[ETR]] ,  FPL Group, Inc. [[FPL]] ,  NSTAR [[NST]] . It’s called rebalancing, with extreme prejudice. There is no sense in waiting for the inevitable and using the strategy of “hope”. 

My sense is that we will test the 2002 lows around 7,200 DJIA. Below that, and we see 6,000 in short (no pun) order.

Currently sitting on 45% cash and 20% munis.

I’m also surprised by the appetite of The Bear, so I also bought a little [[QID]] $91.80 (9:31 ET), [[REW]] $144.09 (9:33 ET) , and [[EEV]] $114.52 (9:33 ET), sprinkled with a little [[SCC]] $185.25 (9:35 ET) for flavor.