The news is saturated with Hank Paulson’s $700 bailout plan. This is diverting attention away from the increasingly bleak outlook for the wider economy.

Rick Pendergraft says no bailout can immediately solve the problems in the housing market. And all indicators suggest these will run well into 2009 at least.

On Thursday morning, Rick Pendergraft at Investor’s Daily Edge was predicting a bounce over the next few months based on the chart of the Dow, record-breaking volume on the major ETFs, and the VIX breaking above the 37.50 level.

Investor’s Daily Edge editors Rick Pendergraft and Andrew Gordon, speaking with Today’s Financial News editor J. Christoph Amberger, recommend four investments to make now to leverage volatility in the crude oil and currency markets.

So far this year, 25 airlines have collapsed. Those that have survived have taken on hefty losses. The seven biggest US carriers had combined 2Q losses of almost $6 billion.

Are US stocks due for a rally? Don’t count on it, says Rick Pendergraft. More bearish movement is likely. Take steps to protect yourself.