Trading fears stemmed from possible insolvency of Fannie Mae and Freddie Mac which could lead to a government buyout. Losses were trimmed after reassurances that “both firms will be kept in their current condition” and an emergency discount window for direct borrowing from the Federal Reserve may be made available.

Bloggers are calling for a bottom; but can we have one without fear?

Oil prices have resumed their northward climb. And inflation has returned to the American lexicon for the first time in decades. For U.S. consumers, there’s no way to dodge the financial fallout of that economic one-two punch.

Oil rises $10.75 to $138.54, jobless rates spike to 5.5%. If these are not bad news, I don’t know what is. Not surprisingly, Dow Jones came down 394.64 (or 3.1%) to close at 12,209.81, its biggest one-day decline since the subprime mortgage crisis in February 2007.

There is really only one word to describe Friday’s intraday action: bullish. Right off the bat, thanks to a report showing the University of Michigan consumer confidence number fell below 60 to a 28-year low, the Nasdaq fell 1.2% within the first two hours.

Well, that sure is not how you like to close them. Especially with volume picking up there while we sold off right after hitting the 200 day moving average on the Nasdaq. The good news is that the market still gapped high enough in the morning that all major market indexes were able to close with gains. But there was a negative blip in regards to leading stocks as the IBD 100 fell 1.2%.

There is no other way to spin today’s action other than it was downright ugly. However, after going over my personal holdings and seeing how few stocks needed to be sold and how few actually fell on higher volume, it became clear to me that I am going to have to see more selling to confirm that this short uptrend is dead.

It was another overall lower volume session as the NYSE, for the 32nd day in-a-row, came in with volume below the 50 day volume average once again. However, underneath the bullish mini-reversal that sent the Nasdaq from a .8% loss to a .8% gain, there was a TON of bullish action in stocks in a wide range of industries.

The stock market continued its losses on Tuesday after Fannie Mae, D.R. Horton Inc. and Swiss bank UBS reported quarterly losses. We also recorded a new record for crude oil, $121.49.

It was another overall boring session to end the week but despite the overall boring tone to Friday’s session it was still a bullish session underneath as many stocks had solid sessions and many stocks that I was long had a very positive session. This kind of action on a do nothing day is just what I like to see in a market that refuses to do much.

I was impressed by today’s stock market session, especially when it came to leading stocks, tech stocks, and even more specifically semiconductor stocks. It was amazing to get a rally in such high-tech group of stocks. What made today’s rally even better was that volume increased on the Nasdaq and was above the 50 day volume average for the fifth time in the past few weeks.

The IBD 100 is up 228.5% compared to SP 500’s 49.5% since 4/18/08

-IBD 85-85 and IBD 100 were down for the week (-.9% compared to Nassy .8%) but they were up over 2.5% on Friday compared to Nassy down .2%.

-This appears to be rotation of some sorts out of commodities into some new sectors

-Internet-Network Solutions up 9% this week

-Computer Software-Design up 5% this week

It was another typical day that we have seen recently where not a lot gets accomplished and we pretty much just give back whatever happened the day before in the opposite direction. Still, I do believe, that today’s gains coming with higher volume is a positive overall.