Zig Zag Pattern

Last 5-6 days stock market pattern is zig zag, extreme roller coaster ride. This is good for day traders and retail traders. Security exchange commission banned short sell on finance stocks, which should be done soon after Lehman's constructive destruction as TSC's John Berlau put it. But this action from SEC was too late, and that itself pushing stock price down further. Today oil price spiked $25, and it was a record for oil trade. It clearly indicates that all investors are nervous and don't know how to react with this uncertainty time. Who ever sold stock on last Monday because of short seller's induce, realized about their stupidity on last Friday because market leveled on Friday. The same would repeat now this week.

Today's reaction because of Congress leader's 44 page response to Paulson's 3 page $700 Billion bail out plan. Nobody knows it is just a politics or congress want to protect tax payers. Any way congress has this week end to pass some bail out plan. For investors, 2-3 day think time is not acceptable, they want to always react negatively now, or they want to pass a bail out plan within 2 hours.

So many predictions are out there about A) when can market turn green, B) when can we see end of tunnel C) will this mild recession so far turn into great depression etc. But this point of time it is anybody's guess. I think rather than predicting something unproductive like what government does with toxic mortgage after 3 years or 1930 great depression coming etc, just allow some time to congress and senate pass bail out plan, and lets see how economy is self adjusting. I believe all hands on the deck, around the world some positive activities going on to clear this mess sooner than later.