Chaos and uncertainty rule in this market. People are scared and are in a panic. I'm sure you feel it yourself, especially if you have 401K's or other long-term investments in the stock market.

Here comes the crash. I've been bearish on the stock market for over a year now. I've made a lot of money this year short-selling the stock market twice. A few times I went long and got stopped out.

Yesterday once again the stock market fell - this time going through the lows set on Monday. There is still no sign of a bottom.

We are on the edge of pure fear and panic when it comes to the stock market. By just about every technical analysis indicator you may use to measure the market it is extremely oversold and ready for a bottom.

I'm writing this around 6:00 AM and the market futures are up this morning following yesterday's 777 point drubbing of the DOW, which came after the House of Representatives voted no against the Wall Street bailout package. We are in a pure crash mode in the market.

On Thursday right before CNBC reported on rumors of the bank bailout plan, Ben Bernanke was meeting with lawmakers and selling the plan to them. Inside a conference room that is part of Speaker of the House Nancy Pelosi's office he was meeting with the Congressional leadership.

I went out of town last week to the Resource Investment Conference in Las Vegas. I'll get to that in a second, but so much is happening that this is going to be a longer message than usual. This weekend we are seeing Lehman go broke, Merrill Lynch in a desperate buyout, AIG try to fend of bankruptcy, and a frightening gap down in the market this morning.

On Thursday the DOW fell over 300 points. I made a killing on my short stock trading positions, but gold stocks fell hard too. Luckily I got stopped out for a small loss the day before, but nonetheless I don't like seeing gold and commodities drop at all here.

We are at a critical point in the economic history of the United States. I know of no other way to put it. The events of last week were of a character that we've never seen before. On Friday mortgage lender IndyMac Bancorp became the second largest federally insured financial company to fail after it got hit by a bank run. The Federal Deposit Insurance Corporation took it over.

The market went into a bit of a roller coaster yesterday after the Fed cut rates. The DOW initially rallied over 150 points after the Fed cut and then faded to close down 37 points. Rumors of a big loss from bond insurer MBIA and expectations that they would receive a credit rating downgrade from Moody's hurt the market.