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From: Rarebird	10/9/2008 8:59:50 AM
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Transcendental Market Fragments: The Market: The Market did not crash yesterday and the central bankers of the world lowered interest rates. The US equity market is at fair value now after years of being overvalued in most sectors, and with a period of absurdly blatant overvaluation during the past year. But this a secular bear market and I expect the Market to become dirt cheap over the next couple of years. The deleveraging by banks has caused many hedge funds to sell their stocks, putting intense selling pressure on the stock market. Selling begets selling despite some very positive moves by the Fed. The stock market is extremely oversold, so once the sellers are finished, there will be very little overhead supply. And, the short sellers and holders of inverse ETFs are likely to provide substantial buying support. Short Term: The Market is in a bottoming process here. I expect a very huge Bear Market rally (similar to July 2002) to begin after the middle of October. Since Bear Market rallies are very short, sharp and sweet, it will pay to get in ahead of time. The 960-965 level on the S&P is a good area to buy.

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