The Crying Game

I have to admit, I found it amusing today as I watched Cramer & Kudlow from CNBC throwing in the towel on the stock market and economy.

All the way down these individuals have offered the eternal ray of sunshine. Now, after a 2,700 point drop in the DJIA, it is suddenly no good anymore. This my friends is a classic case of capitulation which leads me to believe a substantial bottom is near.

Everyone, and I mean everyone is aware of the dangers sub-prime has caused the economy, where do we go now?

I can see a scenario where there is a run on the banking system and the equity markets refuse to go lower, it might sound crazy, but I would ask, why have investor's and money managers fought this bear market during the entire decline? Hope, denial, disbelief?

Now, I'm not saying someone should try to catch a dagger dropped from the tenth floor, but, shouldn't the possibility that the smart money exited the market long ago and is looking for a buying opportunity be considered?

I have several support levels in mind, 11,300, lowest probability of being the bottom, 10,600 and 10,000 (on the djia), any one of these levels could provide substantial support. The bear market is nearing six months old and is growing long in the tooth.

http://www.msnbc.msn.com/id/23518599