- SEC bans short selling on 799 financial companies (more try to get on the list including GE)
- Paulson and Bush talk ambiguously of the RTC-type rescue plan which would essentially buy up all the mortgage related assets of the books of financial instituations and will try to sell it out as would a bond or fund (oh yah...it might also cost a 1/2 trillion dollars that we don't currently have)
- ABK and MBI are threatened with downgrades from MCO
- Oil rallied up about 6%
- Gold prices have biggest one day fall in history
- Dollar falls
Technical Highlights
- Huge 500pt open...but stocks never go back to those levels by the close.
- some charts broke resistance slightly and sit on it, some flirted and are now just below resistance...but overall, resistance above for most charts is very strong
- ETF volume was low...all of them actually..which makes me think that the buying today was maybe PPT buying, not exactly institutions or funds buying
- every sector rallied...only thing down are morgage insurers...
-the week closed basically flat
SPX...big move on strong volume..now at good resistance...
NDX...failed to break resistance and closed well off highs....halved the gains actually by the close
RUT...ended above one resistance and now below a more important one...
MDY...bounced down at good resistance and now has to try to break it if it stands a chance to rally
XLF...the winner today when looking at sectors but it too didn't close near its highs...now is slightly below resistnace
RKH...weak close and highs near resistance...maybe this will turn into a shooting star bearish formation
UUP...dollar was up and down with strong volume...ended lower though but still within yesterday's candle
FXE...euro did well but very low volume...looks fishy as its at resistnace now
GLD...strong resistance held...gold dropped huge in the market but this ETF doesn't show it..anyway, the chart doesn't look like GLD has any more legs
USO...oil at resistnace as well and very close to the infamous 20 MA...as volume declines, it might be tough to hold these prices
A/D...these numbers suggest that today's move was legit...definitely bullish sign
BRK...for fun i had to show berkshire...crazy as its near its all time highs...biggest rise of almost any stock in the S&P and with huge volume too...damn thats a lot of money...
Analysis: Theme of the day is strong rally but closes way off lows and now has very strong resistance just above...as we are in a bear market...its expected to see strong failed rallies...and today seemed like one if we look at charts alone...charts alone, we wouldn't think much of today's move...but knowing the news and the gov't seeming to try everything in their power and even using powers they don't constitutionally have, its looking good for the bulls...but i decided a while back that i will make my main decisions based on technicals, not news...so in that case...i expect resistance to hold next week and for the markets to fall hard, especially financials...i have money on it...so i really want it to happen anyway...
My Performance: (was one of those days where i considered switching professions)
long XLF - up 11.84% ...dropped it at EOD
long ABK - down 41.98%...fuck me!
short EEM - up 12.45%...dammit
short ENER - up 16.65...picking all the winners..fuck...haha
short NEM - up 5.50%
so as u can see...it was one of the worst trading days for me this whole year...it was simply, a nightmare! dammit...
Ideal Portfolio:
before close
- take 100% profits off financial longs that made profit
- buy a financial short
at open
- 80% cash
- small positions in financial shorts
- small position shorting gold
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