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Archive for September, 2008
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September 30, 2008

Early post…

I had a friend come into town yesterday that I have not seen in years, so I am going to go ahead and publish tonight’s post now, and potentially do some editing real time if need be, so I can jet outta here at the close.  There is not much to say here.  We’re up, the financial markets survived another day…  Markets are near term overbought (intraday) and at resistance levels.  The stage is set for a big move tomorrow.

Like Mole said yesterday, the market completely crashed.  We know there are a few things we should expect after a move like that.  One is a “volatility crush,” which the $VIX is gladly giving any poor sap that trades options.  [...]

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September 30, 2008

Intra-Day Update: Keep Your Powder Dry

UPDATE 9:50am EDT: The markets seem to have quieted down on the following headlines:

•Stocks in U.S. Gain on Speculation Rescue Plan to Pass; JPMorgan Advances

•Senate Will Try to Revive Bank-Rescue Plan With a Vote as Soon as Tomorrow

Overnight the London interbank offered rate (LIBOR) reached an all time high on the failure of the bailout plan, and the market sell off.

“The money markets have completely broken down, with no trading taking place at all. There is no market any more. Central banks are the only providers of cash to the market, no-one else is lending.”

-Christoph Rieger, a fixed- income strategist, Dresdner [...]

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September 29, 2008

Low Low Low Low Low…

I’ve been saving this video for a special day – crank it up and enjoy it while you count the insane amount of money you’ve made today – this one goes out to you, Tim Knight!

I’ll get right to business, because frankly I’m completely exhausted and I also don’t want to bore you with breadth stats and other technical mumbo-jumbo. The market completely tanked today, we all know that. So, let’s solely focus on the one question on our mind: What will happen next?

SPX targets and variations in paths.

The boys over at the PPT (and the market) weren’t prepared for the curve ball (i.e. [...]

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September 29, 2008

Intra-Day Update: PPTPL Alert

Not going to waste your time with any chatter on how sweet this move was. Yes, it was more than any of us had hoped for going into the weekend. However many of us didn’t catch much of this one, but that’s a story for another day. Something I NEED to caution you guys about as we’re nearing the closing bell is that we’re dangerously close to the PPTPL again. Take a look:

Back to the PPTPL.

If you’re holding any puts, 3:55pm EDT is a good time to close out. We don’t know what the PPT will come up with overnight, they are surely holding emergency meetings as you read this. Perhaps we get a cut of the fed funds rate [...]

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