We could be nearing a bottom:

• Cramer wants everyone to sell their stocks
• Everyone is talking about the financial crisis. It was the first topic my cab driver wanted to talk about the other day, and friends, who never pay much attention to the market, asked me if it was time to sell.
• The VIX (volatility of stock prices) is at its highest point in the last 18 years, which suggests a bottom.
• In one year the Dow has dropped almost 30%.
• Bailout passed
• Fed buying up corporate debate

All of these signs are good, but it seems like the financial contagion is just hitting the rest of the economy and other countries.  Companies outside of financials are reporting bad quarters and will more than likely keep reporting bad numbers through the end of the year (maybe longer).  While, foreign financial companies are starting to suffer the same fates as their U.S. peers.

At some point the governments and central banks will run out of financial patches and then the full weight of this financial debacle will be felt.

This economic crisis seems bigger than others I have experienced, so I’m keeping most of my cash on the sideline.  Though, I may put 10% of my cash back in the market on another down day this week, as I slowly work my way back in to the market.