I bought FAZ today for $72.52 per share when the market briefly rallied to around 1.2% in the afternoon. I decided to hold my position over night because of a few reasons.

The S&P 500 closed below 700, which I think was an important psychological support level for a vast number of investors and traders.

Tomorrow the ADP employment report will be released and even though the numbers are expected to be bad, I think the market will decline on the news in anticipation of the official employment report from the government on Friday.

Tomorrow the government will release the Beige book report detailing regional economic conditions throughout the United States. I also expect this report to have an unsettling effect on the market inducing further weakness in equities.

Unfortunately, we are less than a month away from the start of earnings reports for the 1st quarter of ’09.  I can’t shake the feeling that the S&P 500 will fall to 600 or perhaps lower this month or next month.

I would not be surprised if FAZ is going for $120.00 per share by around the middle of April. I am not a fan of bear markets so I hope I am wrong.