While the Administration attempts to rescue some shreds of credibility from the present credit infarction the market dances back and forth as though empty words and threats of action would restore the government’s honor and credit.  No chance.  They are hoist on their own petard.  Free market capitalist con-men until the last — including their attempt to foist the problem off on the taxpayer.  Astounding how little honor men have when money is involved.  And they impeached Bill Clinton about sex!!

What does all this mud wrestling have to do with the market?  Mainly impatient and paniced investors are rushing aback and forth, or flopping around like chickens with their heads cut off.  Note:  that includes Warren Buffet.  Every advisor and hedge fund in the world is jumping at shadows and trying to catch the bottom of the market.  That is not what Magee method investors and traders do.  We watch with amusement and scorn as they run hither and yon at the rumors of bailouts and buyouts and more mud wrestling.  After they have exhausted themselves and put in a bottom we go back in the market.  Right now we are short, and have been all year.  How much perspicacity did that take?  Not much.  Just keeping your head while all about you are losing theirs.

The present formation in the Dow now looks like a completed upwave in a bear market,  but three days away from the low day are required to  confirm the low.  

Did we mention that the witching month is coming?  October.  

Note that wave 4 is complete and that the upwave to 4.1 is very weak.  Under the circumstances this is no surprise.  What is surprising is that no one has impeached this president and his minions.