At noon, I have to admit that I'm a bit frustrated watching this market bounce off the intra-day lows.  I don't know if its short-covering or day traders programmed to buy every steep downswing on the open or if its real buyers thinking stocks are a bargain.

However, until we get a meaningful wash-out, I don't think we'll bottom.  That means the drip-drip-drip of the bear market will continue.

Perhaps traders are anticipating a rate cut. 

If a cut is in the offing this week, I'd sell the news.  Every rate cut so far has been met with selling. 

This decade, when Easy Al was in charge, fighting the Fed worked until Greenspan ignited a bubble in housing stocks.  To replicate Greenspan's Grand Experiment, we need an asset bubble.  It is difficult to see what type of bubble will emerge next. 

The current environment is very different from the 1980s and 1990s.  We are currently in a period of asset deflation unlike anything we've seen in a very long time.  Thus, comparisons to the bull market of 1981-2000 are fallacious. 

Until proven otherwise, I plan to sell the rallies.