This might be shortsighted, but I believe the AIG story has already been baked into today's market. However, here's what I think would or will trip a lot of traders tomorrow. I think Bernanke will do something totally unexpected, whatever that may be.
The scale in long position is now complete. 1145.75 catastrophic stop (3% risk of account) Tuesday 4PM EST Close final target No scaling out will be performed and no stop adjustment. Emini Guru
Anyone buying here? Going for the big score here. I see solid RSI support 15, 30, 60, 120, 240. Long 10 contracts 1281.25 Stop 1273. Late posting (I attached my screenshot, time is on PST)
They should investigate themselves, am I the only one who thinks the last 30 minutes of Friday looked 'artificial'? LEH was known to be on its last legs, maybe price only gapped down so hard because 'they' ran it up to 1259 on Friday rather than letting it drop to 1230-1240. Other than high volume there was imo nothing weird or panicky about the action today.
Just in case you're mathmatically challenged, in the unlikely event of a major catastrophe, namely being stopped out, your total possible loss would be $139,875 (excluding commish and other fees).
I don't post much, but this deal is different. In 1987 a total collapse was averted by 4-5 hours, close call. This time the entire globe is involved in this economic upheaval. There's a ton of stuff going on behind the screens that isn't making the wires, if it isn't successful this will get about as ugly as it can. I'm not trying scare or sway anyone, just telling it as it exists. I don't have a position at the moment either way. One last thing, you won't believe the speed this will generate if it goes south. Good and CAREFUL trading to all.
holding cash, too much unknown. If ben chopter flies in or aig buyout before open tomorrow shorts get screwed, otherwise this thing will drop like a rock. My only trade will be premarket if it's still only down <20 pt and gs earning is nonevent(worse or meet expectation), will short into market open with hand on the close button in case of news. will start thinking about catching the knife when vix heads to 37+ and volume gap, otherwise i rather miss the bounce then catch this thing.
Crash is not allowed The only reason why some firms failed because the governments are not cornered yet. If they are cornered, they will do anything - including calling short sellers criminals, if needed, to stop their political careers from beings threatened. Edit: If my memory is correct, during last financial crisis, some countries make sure people only buy stocks at higher prices or they go to jail ...