The futures have been slightly positive for eight hours after the close as I write this. So now the question is, will Jim Cramer once again lead the short attack as he did Wednesday morning? Here is what he wrote at 8:06am on Wednesday morning:
“The shorts must make a stand here and force down the futures to create a climate of fear. It must happen, this has been way too big a gravy train and the fear must be sewn. That’s what hedge funds do, for heaven’s sake. Europe’s market seems more realistic.”
If you look at a minute chart of the futures from Wednesday morning, you will see that the wave of selling began less than five minutes later. A lot of hedge funds follow Cramer…
Watch the comments for updates throughout the day.
eli,
The QQQQ is more weighted towards large-cap tech than the COMP index. Similar to DOW30 vs SPY500. As for the QID…you’re not really asking, are you?
eli,
I haven’t studied the issue, but the Q’s are only 100 stocks, and the NASDAQ Composite has, what, a couple thousand?
Matt
The spike appears to be due to the resurrection of the “Resolution Trust Corp” idea and the announcement that’s being seriously considered. Whee…so much for 36 period MA’s
http://www.bloomberg.com/apps/news?pid=20601087&sid=aOEQDGa_6XT0
Matt, all in double short ETF. In Europe. Not too bad if USA stops here.
I was gambling on a crash. I’ll be ok.
On top of UK ban on short selling financials…
New York Attorney General Andrew Cuomo said Thursday he’s launching a “wide-ranging” investigation into short-selling on Wall Street, particularly in financial stocks.
On a conference call with reporters, Cuomo said he intends to use New York’s Martin Act to prosecute short sellers who spread false rumors and engage in other improper conduct.
The attorney general said he’s looking into short-selling in a number of financial firms, including Lehman Brothers Holdings Inc. (LEH), American International Group (AIG), Goldman Sachs Group (GS) and Morgan Stanley Inc. (MS) .
Cuomo also called upon the U.S. Securities and Exchange Commission to temporarily suspend all short-selling on financial stocks, preferably for 30 days.
Jack,
Earlier in the comments, last night maybe, I mentioned that the TRIN didn’t seem to be working right during this crash. I won’t start using it again until the market gets back into a normal pattern.
Matt
Jack,
I’ve got the TRIN as <0.5, meaning that the average volume on the advancing stocks is more than double that of the declining stocks.
K;
Prime example of stock pairs. SKF:UYG. SKF up in the AM, UYG up in the PM. Best of both worlds. You gotta try this. Even if you paper trade it.
There’s such a price difference between the two, I have to buy 10 times more UYG. lol
The problem with SKF is whenever you trade it – doesn’t matter if you sell or buy – there is always a point in time when you regret it. SKF can make you very rich and also very mental.
anybody getting short here?
Resolution Trust Corp solution. I fought the government and I lost.
Brian,
Thanks. So it looks like the SEC is going to wrap the poor little financials in bubble wrap, just like UK. So instead of closing the market like Russia, we just rig the market instead. Wonderful.
How about instead of no short selling, no selling at all? Only buying should be allowed on the financials. No wonder the S&P is at 1200 while XLF is at 20.2.
Zen,
Before shorting, its usually a good idea to wait for a reversal pattern to form on the charts.
Matt
I would say the bulls broke the bear’s neck. What a fight and what a success for the bulls. Watching the stock market is better than American football, basketball and baseball together.
Larry,
That was a hell of a gamble. Hope you can survive it.
Matt
sold my GS options. Too risky to hold overnight.
I’m in the same boat as you, Larry. Just got burned bad…debating selling what I have now to go long for a while…however, the last time I did this, the market resumed its plunge the next day. Oh well.
Zen,
Can’t you see? All the probelms are over. The shorts were the problem, not housing, not poor risk management. I guess this is why WB is up 50%, and WFC is making an all-time high.
I’ll take the Red Pill, thank you very much. I may leave the financials alone (I don’t like plaing with cheaters), and look elsewhere instead, but probably stay neutral for a while.
Dressgaurd,
It really wasn’t the bulls per se. It was like a wild-west quick draw duel where the bears got taken out by a sniper.
towelie, Europe market closed. We just have to ride it through. Sit if you can. It will turn down below these levels in 4 weeks.
Bears only have 1 tool.. that is to short stocks and write options. When that power is taken away by the FED, it is like giving the Bulls a AK-47. Hard to fight this.. but we’ll see.
Are you guys still looking to get short in this market or wait?
Matt, Rich, George, Paul, K?
Atrade logged me out. How courteous, I didn’t even have to ask!
K;
When you use pairs, don’t trade anything else. Get SDS:SSO screens on your monitor – and that’s it. Use a 1 or 5 minute time frame. The 1 minute gives more action and allows you to learn quicker – the same moves are made on all time frames.
Besides, the 1 minute along with the MACD or trendlines can be used exclusively for trading and nothing else, if needed. While the stochastic cycles on a 1 minute are numerous, the trades and trends on that time frame are endless.
You won’t get bored and using only two you won’t get confused. Put them side-by-side. That’s what I do on three monitors. I use tabbed browsing with 4 time frames of each stock on the left, like SSO and 4 on the right SDS. I only use the other time frames for verification while viewing say the 1 minute of each. Then later you can have your Apple and BBT and other favorites on another screen or in the background.
You don’t have to do stock scans, news, research and all that stuff. Just trade the technicals and learn what to look for. Matt & company will provide the general happenings and vision.
Don’t expect anything. Nada. Zilch. Don’t anticipate. Make price prove itsself. Just follow your indicators. You don’t care. All you want is price to move and move big time. That’s your nightly bedtime prayer.
The best part is, it doesn’t take long when you concentrate in this manner.
Ouch this rally hurt
Larry – hey, I was up, on and working to do heads up at 0200 today !
Seriously buried the RTC thingee in my post and may not have made my point very well here. Double seriously didn’t see it coming either – and the markets reaction.
That said my TRIN seems to be doing what said it would and is ~.61 right now. We’ll see but maybe you’ll get it back tomorrow ? Or later ?
Hypothesis – this doesn’t fix the problems just lets the credit flow thru the pipes. Even with the CBs injections coordinate worldwide liquidity was crashing. We were about to die, figuratively speaking, IMHO.
Shorting is ok but not naked shorting. How can you sell something you don’t have? This is cheating and nothing else. I told you yesterday after the trading session to go long today. Ok, I know you shouldn’t listen to me, but every now and then you should listen to Ben. I learned my lesson at the beginning of the year. Won’t do the same mistakes again. Believe me the world is not going under … again.
I was in XLE and sold up at the high, it is back in the downtrend channel I have.
Dressguard, the losses are not that bad. But first the government needs to get the index up to 35 times next year’s earnings. Then the house will fall.
Charlie,
I will certainly be looking for the next juicy entry point to get very short again. Nothing that has happened today will change the direction of the business cycle. The economy will almost certainly continue to contract.
Matt
Yeah, I’m in it for the long haul now…sold about 20% of it so I could get a bit more to play with in the meantime.
Market: 3, towelie: 0.
this rally does hurt.
George thanks for the awesome tips.
all i did was set the stop too close on the SPY.
i checked a website and said for short term 112.41 but i had put 115.40 so ah well this rally think surprised many of us.
I still don;t know what caused as i just came in now to this blog and nothing else.
Matt,
will any of you go short for tomorrow’s volatile session?
Thanks Matt,
Good luck Towelie, I was shaken out of my GS position earlier only to have it reverse big and bounce as high as 120. I was able to recoup losses with a few options, but based on the way they are priced.. it seems that the bulls are very skeptical about these financials being able to stay afloat. I was expecting a huge gain on my options, but they didn’t rise as much as I thought they would given the price increase in the shares.
Matt, be very careful the next days and even weeks. The game is rigged and we have to watch the markets very closely. Don’t short too soon. See SKF. I suppose a lot of people today lost all their gains in SKF just in a split second. A bear market can kill you before you realize it.
K, the game is over. The panic is over. The Bulls (and gov’t) won.
(I think)
Dressguard,
I believe the UK is banning all short selling of financials and any other sector that they choose to. Same with NY AG call to ban short selling of financials in the US.
It is stupid to ban short selling. In a lot of emerging markets you don’t have short selling and they fluctuate and drop even more heavily. Every shortie becomes at some point in time a buyer and that stabilizes the markets. Short selling is ok, but not naked short selling. This is simply fraud!!!
Russia’s market will open tomorrow. wonder if that will have any effect to what happens here. I def cannot trade anything during the day tomorrow tho so
lol… I got this off of AlphaTrends, but this is what we got today.
http://www.youtube.com/watch?v=QUZtTHWnuLA
hahah charlie
i think thats what will happen here ? haha
notice.. they didn’t have spotters.. so who is going to spot the market when it comes down again?
Dressguard,
I will obviously be looking for an ideal entry point to go short again, whenever that may be. I am hoping for another sharp bear-market rally. However, I would hate to be long or on the sidelines when the -150k to -200k jobs bombs start dropping.
Matt
here i go again with a link from yesterday now that we got a next day bounce what do we do? http://bespokeinvest.typepad.com/bespoke/2008/09/multiple-4-decl.html
To Larry, towelie and the other bears: I hope things turn out well for you.
I’m pretty much in agreement with Dressguard. Right now, it is too risky for me to take any position until the whole Resolution Trust Corp and new shortselling rules get decided. Why go long if the fundamentals are trash? Why go short if the government is going to do anything in their power to prop stocks?
There will always be another whole in the dyke. Now I understand why the last FED statement said that there danger of inflation while most signs were pointing towards the moderating that they had predicted.
I agree with Dressguard and Paul, this panic is now over (most likely).
I should have listened to Paul and Matt and sit with my profits from Tuesday. Got greedy. Having said that, the bears were minutes away from a 1929 crash today. Minutes. We had panic levels not seen since 2002 (vix) and WWII (T-Bills).
I will now sit short through the upcoming bear-rally.
Caveat: The credit markets are still 97% dysfunctional.
Dressguard Says:
“September 18th, 2008 at 3:34 pm
The problem with SKF is whenever you trade it – doesn’t matter if you sell or buy – there is always a point in time when you regret it. SKF can make you very rich and also very mental.”
*************************************************************
I don’t know how you trade or the time frame you’re interested in, but each time frame requires confirmation from a higher time frame, the way I do it. This is just my view of how I look at trading and different stocks. We’re all different.
SKF is no different from any other stock in my view. It moves up and down. One of my problems early on was staying in a stock too long when it wasn’t really going up. Once I recognized there were different time frame cycles – which come from the bottom(!) – I solved that problem. I then knew that if the lower time frames were not cycling up, the higher time frames wouldn’t either: Just the opposite I was being taught early on.
I have zero skills with over-all market direction analysis and charting, Fibs, etc. I need those and want those. However, until then, my method allows anyone at any time to day-trade any stock and be profitable (as long as the stock moves, of course). And you don’t have to wait until all the stars and planets in heaven align to trade. Every few minutes, another one comes along. That doesn’t mean making thousands of dollars off an unknown stock, just profitable. And the key to that profit is to get in and out with a profit whether I catch a trend or not.
I took core positions in some of the inverse stocks based upon Matt’s entries and market overview (that gave me the confidence to hold positions). Yesterday, I got out of my core inverse positions. I lucked out. I made that decision based upon my rules, plus I had made a good profit. One of those was SKF. Had I stayed in…well… who knows? They will most likely continue up. If so, I’ll day-trade them and wait until the next overall wave.
But I banked profits because I got out soon enough. If it was too soon, no problem, I’ll jump back in for more.
Best Wishes
george you said you use stockcharts if i am correct?
I will try to get their chart subscription again.
I use Ameritrade’s Strategy Desk right now but i don’t know why it feels weird maybe i was used to stockcharts.
K;
I use Stockcharts with a backup of Askresearch charts. Askresearch has streaming quotes as well as refreshable screens.
I made profit with my lovely SKFs but I could have made more profit – today. But at the same time I could have made less profit today, too. I don’t regret making profit but I could have made more. That’s why I say, I always regret trading SKF. It’s just a psychological thing. As I said, SKF is a heart attack with a ticker symbol.
Charlie – that’s very funny. Thanks. I’ll use it again. May build a post around it. Goes with this one….watched to the tune of “what do you do with a drunken bear (sailor)”:
http://www.youtube.com/watch?v=v8Fqin1VigU
And y’all the spotters btw ? Grew up in Wyoming and have met a bear in the woods. An interesting experience happy to talk about instead of being memorialized.
Tomorrow will be interesting. Not sure it’s over.
Larry;
…the bears were minutes away from a 1929 crash today. Minutes. We had panic levels not seen since 2002 (vix) and WWII (T-Bills).”
That’s scary stuff. I didn’t even realize that was going on.
i still think bears will have their ways. but for now i’ll be neutral
Biggest gainer in the SKF financials today is NCT. But look at the AH trade.
stockscans help too GOSH i had one of 3 symbols i chose today and all were green even while market was down and look at it GHL
the other 2 were WERN and IRBT. lol
Reading some international comments … this reminds me of the WMD baloney which killed future support for US interventions on the basis of intelligence (Iran) Now the economic credibility (and the right to intervene on behalf of free markets) lies in shambles – unintended consequences will pop up.
Resolution Trust Corp sold the assets of the S&L mess. Banks are no S&Ls… Will this time the shareholder _and_ the bondholders _and_ the sheeples with their taxes pay? Wall Street seems to believe that the shareholders won’t be touched…
George,
I see that BBT is close to making a 52-week high. Nice pick. That’s not easy to do in such a nasty bear market.
Matt
Charlie;
“Are you guys still looking to get short in this market or wait?
Matt, Rich, George, Paul, K?”
I will certainly go with the inverse if it provides an opportunity. The daily stochastic on SDS is near 80 where anything can happen – and usually does. The weekly and monthly are peaking although they have been in a bull market.
My other charts won’t work until I download JAVA where I can get a better view.
If I was put on the spot, I’d say the bias is to the downside until proven otherwise.
Matt;
Thanks. I rather thought it was because everyone on the board here was buying BBT. I was really pumping it up!
I’ve traded it for years and it has done well. Plus it is a good company.
The RTC dispensed commercial real estate. Just imagine the complexity of putting a value on these complex securites which contain pieces of other instruments which contain pieces of other instruments and on and on, far removed from the actual asset. Then what if the owners refuse to sell? Are they forced?
This is a sign of despaeration similar to what the UK is doing on short selling.
Jeff Macke (Fast Money) on a RTC-style solution: “long for a trade, I weep for children, free markets and the future.” or something like that.
Also, as Yerk was saying, RTC in the 90s sold assets of bankrupt companies to help liquidity. They did not buy low quality assets from financial institutions. The keys to whether the taxpayer gets screwed (most likely) is (a) how the RTC obtains the junk and at what prices and (b) how it shares in the bank equities/bonds.
Paul F – all too twue. You should have heard McCulley on CNBC. As excited as I’ve heard him about the kaboom. To George’s earlier point – close. Or as the Iron Duke put it, “it was a near-run thing, a damm near-run thing”. McCulley made the key point IMHO – pay and loose $1 as taxpayers. Or wait as members of the economy and pay $5,10, who knows later after you’ve lost your job, house and savings. Choices that stark ? Possibly. want to gamble they’re not ?
The more and more I think about this RTC thing, the less and less I understand how it is supposed to help.
How will the govt. buying these assets help? The banks are still bankrupt…. These assets dropped in value, the banks were levered to the hilt, and lost it all. They owe more than they own. They have negative net worth. They are insolvent. bankrupt. I don’t know any other ways to say the same thing. How does the govt. taking it out of their hands now do anything? Unless they are buying them at prices several times higher than the assets are worth…in which case I am outraged. I guess I just convinced myself that the only way for this to help is to screw the taxpayer. There’s no way around it. Anyone else agree?
Dblwyo,
That’s a good point ($1 now, $5 later). I’ll give an undeserved $1 now: as long as the ones responsible give a h*ll of a lot more. I didn’t speculate and buy a house over my head and I sure as heck wasn’t making 30% a year on high-risk equity tranche CDOs for the last five years. Where’s the moral hazard? The banks took that gamble that you mentioned, but now that the bet went against them, they are getting bailed out? Heads they win, tails we (the taxpayer) lose.
Does look like this is the beginning of a major abear marekt rally.
Importantly though the market usually retests its low before the bear rally really gathers steam.
http://www.stockcharts.com/charts/indices/McSumNYSE.html
This is a rather long piece about the implications of the AIG but might be worth the read (long-term bearish):
“So instead of doing the right thing – pushing AIG into bankruptcy court and providing government DIP financing – the Fed and Treasury have formally nationalized AIG and they have created a legal mess where there will be endless confusion and lack of transparency of the government claims relative to junior and senior creditors of AIG, short term creditors and long term creditors, insurance policy holders of a traditional sort and of a non-traditional sort (life and casualty holders versus bond insurance holders).
And by nationalizing AIG the government that two days ago drew a line in the sand on no more bailout with its decision to let Lehman to go bust has now opened again the floodgates of moral hazard and of private firms’ demands to be bailed out. Already Ford and GM are requesting loans guarantees and Congress is considering them. Next will be airlines and lots of other non-financial corporate who expect now the government to bail them out.”
http://www.rgemonitor.com/roubini-monitor/253625/the_transformation_of_the_usa_into_the_ussra_united_socialist_state_republic_of_america_continues__at_full_speed_with_the_nationalization_of_aig/
“Unless they are buying them at prices several times higher than the assets are worth”
Public money has always been treated as free money. I guess we should have known better than to think Paulson would let the firm he once led go bankrupt or get bought on the cheap. Ironically, he led the bank during the time it got in this mess. Talk about a conflict of interest. This is like putting Angelo Mozilo in charge of HUD.
Yerk,
On thing about Paulson: he NEVER said or even implied that would be no more bailouts. Some people assumed this because there was no Lehman bailout.
I present the H.E.L.I.C.O.P.T.E.R Plan that describes Ben Bernanke’s strategy:
Handing
Everyone
Lots of
Incentives &
Cash to
Obligate in
Perpetuity
Taxation
Earmarks &
Rallies
source: a blog lost link
George:
Thanks for sharing your technique – it’s not often someone will do that. Have already gained just from using multiple time frames, so thanks for the follow-up, too.
Banks;
I believe Investment Banks differ from retail/commercial banks somewhat.
Retail banks have a deposit and savings account base for liquidity plus service charges and sales products for revenue. This would make them more deversified with an ability to secure loans.
Retail banks that make poor quality loans are certainly subject to go under if there are enough of them. However, with merger mania, many will be scouped up by other banks in order to expand their account footprint territory. Fed Auditors swoop down on retail banks like commandos.
Retail banks that are highly diversified will withstand more credit and liability pressure due to multiple sources of income. Mid-tier to large banks offer factoring services, brokerage services, mortgage loans, business cash management, credit cards, insurance, floor plans, and a host of other services.
Investment banks have various vehicles for income but all have more risk associated. The buzzwords for their industry are: hedge funds, underwriting, derivatives, foreign exchange, carry-trades, commodities, etc. In fact, they are poorly regulated to the point they have off-shore hedge funds and satellite facilities to accomodate speculation without government oversight or intervention.
From my observation, it wasn’t the mortgage loans that brought them down, but their investments, some of which included the mortgage loans, but not exclusively. Those mortgage loans were only a small part of the problem which later impacted their bottom-line after the fact. Where were the Auditors?
In summary, I don’t have any problem overall with retail banks. I believe most are well run and diversified adequately. How can we tell? Those that are well run will be reflected in their share price. I follow several and that seems to be the pattern.
Russ;
That’s great! Takes a while to get used to it but once you do…
Good Stuff
http://tinyurl.com/456h4d
No way Jose. one more wave down. 1060-1070
In other words it was going to 121 anyway. I told my peeps this last night. this bounce was a corrective C wave after wave three of the 3/3. believe it or not, SPX is not even oversold yet on a weekly stochs basis.
David – thanks for that. Interesting…almost think I understand it. Get most of the indicators but in me ‘umble ignorances don’t get the main chart on SPY quite. Sorta. Some day in your copious spare time if you’d annotate one of those as a teaching benchmark so we could study and learn it’d be much appreciated.
A major act of charity I know but think of the positive karma.
short it here or on a retest of todays high with all your might. take half off at today’s low and let the rest ride until 1070
http://tradermike.net/2008/09/september_18_2008_recap_almost_like_yesterday_never_happened/
also
http://biz.yahoo.com/ap/080918/financial_meltdown.html
But a person with knowledge of the talks told The Associated Press that the idea, patterned after the Resolution Trust Corp. set up in the aftermath of the savings and loan crisis of the 1980s, was just one idea on the table.
The person, speaking on condition of anonymity because of the sensitivity of the discussions, said the talks had not narrowed to a single option, and that the RTC-style solution was not a certainty.
Paul F – take your point but don’t think your choices are on the menu. System is going from institutional failure to failure and risk of systemic metastasis and catastrophic breakdown were rising. Choices were intervene or collapse not intervene or not intervene. A probability – intervene = save system, hurt people (80%). Not intervene = system collapse, no s.t. damage, everybody’s ideology intact. Risk of major catastrophe 15%. Major catastrophe = near total lose for most (95%).
Plus these guys are making combat decisions one after the other, totally sleep deprived about rocket science with everybody and their brother carping at them and blaming them. And to do their jobs they’ve got to swallow it all and keep soldiering. Or go home and let it go kaboom.
Think we’re lucky to have people of this character and skill in the right place at the right time. And nobody will know or care if it works and will pillory them if it doesn’t. That’s selfless public service at it’s best.
S&P futures hit 1220.
time for a pullback Matt?
I may be wrong but going long after today’s move may go down in history as one of the dumbest trades ever. we actually retraced over 38% of the correction already. Can you believe it? In one day. So a good title for a blog entry may be: “Is the bear rally over?” LOL.
I have a whole list of things why that was not the bottom.
David,keep it coming you make for good reading
hmm
http://i38.tinypic.com/20axnwy.jpg look at spy
David,
the EW crowd with their glass balls – you’re not the only one suggesting such a sequence.
Let’s see what happens after options fixing…
So the RTC thing isn’t even a done-deal? Evil rumor mongering shorts…er, i mean longs! What a joke…now the “blame it all on short sellers” mantra is back. CEO of MS said short sellers ruined his company.
Dblwyo: I’ve had that sort of debate with myself for quite a while now. The main problem with the bailout thinking is that it doesn’t have an end. Where do you draw the line? What metric do you use to decide if a company is worthy of a bailout? I’m not disagreeing with you, but this is a very slippery slope. In the end, does it actually avert disaster or just delay the inevitable? Did BAC buy up Countrywide and MER in a bid to ensure they too are “too big to fail?”
The irony for today: U.K. bans short selling of financials, U.S. takes over the fourth major company (and largest insurer in the world) this year…Russia just suspends trading. Which country is supposed to stand for free markets and which one is the evil pinko commies?
towelie – yep and yep. This is fun and right up my alley but…this is a trading blog. Listening to online Mon Rose show which is just superb, short of RTC wasn’t on table. Starts with Summers goes to Sorkin/Roubini/Josh Rosner. Wraps a nice context of what’s going on here:
http://www.charlierose.com/shows/2008/09/15/1/a-discussion-about-the-crisis-on-wall-street
Would rather here more from David about saving us drunken bears from the bear hunters and their Weatherbys. Especially since I’m in the Ryndex stuff and don’t/can’t day-trade.
Standing in front of the terminal looking for a virgin to sacrifice (you can imagine the rites) to placate the futures gods.
towelie yea plain rumor moved market 600+ points i think
“The main problem with the bailout thinking is that it doesn’t have an end. Where do you draw the line? What metric do you use to decide if a company is worthy of a bailout?”
Barry Rithotlz made a great point on that. hehe
http://bigpicture.typepad.com/comments/2008/09/the-terrible-le.html
good funny read.
Apparently, you don’t draw the line on Money-market funds. Latest is an FDIC-plan to insure these. Of course, this would be without the benefit of years collecting payments in good times. Privatize the gains, socialize the losses once again.
Also, in the meeting, someone from the SEC (I belive it was Chris Cox) said that they were going to temporarily ban short-selling. I’ve changed my view on this somewhat. If the ban is truly temporary – no more than 1 month, and no extensions – then perhaps this is fair to give the government time to get a decent plan together.
if the futures continue i smell a shorting on gap up here tomorrow!
If George is still around just looked at SP, Dow using his 36Ma trick modified with the 36/72/108 stunt. Right up until 3 p.m. today they markets marched right down the 108 as upper level resistance. If we ever see normal again that may be very useful to combine with the Master’s other teachings.
whoaaaaaaaa yea i want in on SKF at around $100 at open tomorrow. http://bespokeinvest.typepad.com/bespoke/2008/09/l-1.html
Matt -
Would last 3 days plus the likely gap up tomorrow qualify as “broadening” pattern as you talked about on Sept 15? If so, it looks like the next drop (Monday?) will likely be HUGE.
http://www.trivisonno.com/goodbye-july
The S&P futures are meeting resistance at the 78.6% fib retracement of the drop from Friday’s close. My daily stochastic is very close to crossing-up. If it does that, then the next bear-market rally may be birthed.
If the markets gap up and SKF dives you mean…and then market turns over ? Makes sense. Just looked at it for five days and that 108 MA works pretty well as resistance as well. Take a look.
how does the short selling ban affect these short etf’s tho?
that’s a question that popped into my mind
After long meetings, our fearless leaders “reached a bipartisan agreement to work together. They look forward to receiving the proposal.”
I’m not really sure what got done…
Sec Ban Short selling: http://bigpicture.typepad.com/comments/2008/09/sec-ban-all-sho.html
SEC intends to temporarily ban short selling, but it’s not clear if the commission has approved the move. Cox is briefing congressional leaders. Separately, the government is seeking congressional authority to buy distressed assets.
This is nothing short of a total panic by people who have no clue what they are doing.
We Are A Nation of Morons, led by complete Idiots, making us complicit in our own self destruction.
David have you sen the futures? Looks like we could break resistance in all indices
How come 2 3 years ago social security and medi care was going broke and now we are throwing 100s of billions of dollars to Iraq,banks,ins. companies.,.Sorry but what the fuck is going on here??