BIG MONEY HEDGE FUNDS WILL KEEP DUMPING THE FAT ONES, BY vfrtxn 9-10-08

I bought more QID today at 13:27:29 hours at $48.73. Now why on Earth would I add more QID after such a huge run?

The answer is money flow. The trend is strong, the tape confirms the gaps being filled on the QID and other shorting ETF devices.

Conviction, not only mine but the fact of conviction in the no confidence vote written all over our three major market charts, the DOW, the NASDAQ, and the S&P. I am playing that we break down and old support lines fall away now.

It is my belief that hedge funds that held stocks in the energy sector began dumping in force this week as witnessed in UPL, MEE, RRC and many others. Today that sector saw a dead cat bounce IMHO. A dead cat bounce that will only be sold off further. I feel it's a suckers bet to chase such a bounce. I see the decay in home values in our country as a major contributor to the markets continued long term weakness, what a news flash right?

I still see this time as a great time to sell off those major stocks like GOOG, AAPL and others like them with huge market cap and vast sums of profits made over the last 5 years laying out there daily to be taken by those who are taking their profits now and will be looking back in 6 months thankful they did.

I see the frustration that exists in the markets in the movement of volatility, it's heavy and thick with fragility, uncertainty, but most of all I sense a stronger amount of weakness than I saw on July 15, 2008 as the DOW touched the 10,731.96 mark. I see support falling quickly this time to test lower ground for newer lows. It is for that reason that some time ago I moved my market bottom targets lower.

BEAR MARKETS TEST LOWER LOWS AND FALL.

BULL markets test higher highs and go higher.

If I held huge sums of profits in my hedge fund I would sell for profit now and ask questions later in order to fill my clients request to save all I could from this bear market. To wait in hope is a fools game right now as we move lower.

V.