Chris Rowe

Is the Market Reversing?

    Tweet This

Following July's IndyMac (IDMC) fiasco, the month closed out with two more banks -- National Bank of Nevada and First Heritage Bank of Newport Beach, Calif., with a combined $4 billion asset value -- going belly-up.

That makes eight banks so far. Yikes!

WHAT IF YOUR BANK IS THE NEXT ONE TO CLOSE?

Unlike IndyMac, where the FDIC stepped in to reimburse depositors (as the FDIC insures your deposits up to $100,000), the two most-recent banks to blow up were sold to Mutual of Omaha. As customers of the latter, their cash remains intact, while former IndyMac customers are dealing with the fact that at least a portion of their funds that were not insured by the FDIC might be lost forever.

Events like this should make us all wonder whether our money is safe. It's a scary thought, I know. It's a relief to know that the FDIC has you covered up to $100,000, but what if you, or someone you care about, have more than that at risk?

Even if you don't have more than $100,000 in the bank, at least you'll learn a few simple tricks that can save someone you know a fortune ... or at least make you sound sharp at the next cocktail party. This could be a great way to make some friends (who will owe you some favors)!

IT'S TIME TO MAKE PROFITS WORTH PROTECTING

Based on the action of the CBOE Volatility Index (VIX), as well as numerous other indicators that I follow, the market is way oversold, and we will likely see an oversold rally in this market.

With the understanding that we're talking about an intermediate-term rally within a long-term downtrend, NOW is the time to get bullish!

I recently noted that "We just might get one more fast sell-off here, but I wouldn't be very bearish given how oversold we are."

Well, we recently saw a big sell-off, right?