Excerpts from my blogpost this Sunday are as follows:

I do not believe the end of quarter treasury and Fed auctions have proved very helpful as a long term solution to anything. The financial overhangs and risks are still out there. As we kick off the first week of Q2 08, this weeks economic data spells trouble and risks remain to the downside. Following this week’s data ending April 4, the Q1 08 earnings season begins a week later between April 11-14. Risks on balance can be to the downside through most of the month. Chances of further equity market declines may be increasing rather than diminishing.

Point being, there is nothing optimistic for investors to write home to mom about as we enter Q2 08. Brace yourselves, as it would appear downside risks are far greater than upside risks at the moment. I think for a meaningful shift in investor sentiment to occur, the administration and US treasury would have to legislate some sort of mortgage relief that would require banks to write down principals, and the setup of a Resolution Trust Corp –like company (RTC) to take in bad mortgage loans and dispose of them like the RTC did with the assets of the 1,000’s of S&L companies that defaulted in 1989.

John Bougearel
SuccessfulTradingTips.com

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