Posted by 17 February 2009

February 17th Recap: Banking Index at a New All-Time Low

The banks and other financial stocks continued to lead the broader market lower. Today the BKX broke to a new all-time(!!) low by dropping below the 1993 low of 24.69. There’s really not much more to say besides “all-time lows” and “the trend is your friend”. The XLF also made a new all-time low today, [...]

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Posted by 16 February 2009

February 13 2009 Stock Market Recap

I think (and hope) we’re getting to the point where the market will no longer be focused on TARP & stimulus announcements from the government. On Friday both the S&P 500 and Nasdaq traded at prices they traded at on October 10th, the first major reaction low in autumn. So one could argue that we’ve [...]

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Posted by 11 February 2009

Tight Stops and Risk/Reward Ratios

Cameron just left a question for me in the comments to last night’s recap. He asked: I’m looking at your way of thinking about the market. One of the biggest questions I have, though, is regarding your stops. You said you set your stop at just .20 over your short dollar amount. With all of [...]

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Posted by 10 February 2009

February 10 2009 Stock Market Recap

Well the plan I laid out last night worked pretty well today. I said I was going to focus on the S&P 500 but I ended up shorting the QQQQ instead. Like I said yesterday, I wanted to wait until after Geithner started speaking at 11 AM before I did anything. Luckily the indices traded [...]

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Posted by 9 February 2009

February 9 2009 Stock Market Recap

There’s not much to do now except wait for the market’s reaction to what Obama has to say tonight and what Geithner reveals tomorrow at 11 AM. I almost don’t want to mention the technicals given that we should be driven by the news everybody’s been waiting for. But I do see many setups (NR7s, [...]

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