Nitro is right, we just saw capitulation.I'm long ES as well we'll have AT LEAST a dead cat bounce tomorrow. 8500 dow, come on !
Asian markets in panic. Selling affecting our markets. This is the greatest buying opportunity in six years. So hard to jump in, unless you have a strict plan. nitro
If you're long ES at 920, you better be prepared to hold through 850, cause the ES is going to hit limit down at least once this overnight session. Not saying we won't bounce, but you're a bit early.
I must admit I never thought we'd hit 8500 on the Dow. However since we have as of tomorrow I'm gonna start averaging into the market on a scale with my long-term "safe" money. I don't expect to catch the bottom but some of these shares are being unduly killed.
<embed type='application/x-shockwave-flash' src='http://foxnews1.a.mms.mavenapps.net/mms/rt/1/site/foxnews1-foxbusiness-pub01-live/current/videolandingpage/fullPlayer/client/embedded/embedded.swf' id='mediumFlashEmbedded' pluginspage='http://www.macromedia.com/go/getflashplayer' bgcolor='#000000' allowScriptAccess='always' allowFullScreen='true' quality='high' name='undefined' play='false' scale='noscale' menu='false' salign='LT' scriptAccess='always' wmode='false' height='275' width='305' flashvars='playerId=videolandingpage&playerTemplateId=fullPlayer&categoryTitle=Latest Video&referralObject=3145737&referralPlaylistId=1292d14d0e3afdcf0b31500afefb92724c08f046' /> Listen to the whole interview. He explains what and why. You have to understand the billions in 401k's, and the people don't pay attention. This week, they started opening the envelopes, and they are scared to death. This weekend is going to be frightening. I dealt w/retail. they will leave tomorrow, and on Monday, they'll be a deluge of redemptions. when these open ended funds get redemptions, it's as simple as the secretary bringing in the forms, electronic or snail mail. To dig your heels and 'take a position' is suicide. If you're perfect, you'll make a few basis points and brag. Personally, I don't give a shit if you're spot on, and the truth be known, no one else does either. Folks are down 45% in the quarter ending 9/30. They'll call in and check by phone and find out they're down another 25% plus since then. That's 3000 Dow Points. These managers will have to dump, and I mean "dump" stocks he doesn't want to. You want capitulation? You get long those contracts, and put me on speed dial. When you either puke or shit yourself, call me. That'll be it. That's what true capitulation is. And it's like combat. You can't explain it. You have to experience it. You won't soon forget it, either. BTW. Margin calls. Wheelbarrows full of those. I used to be pretty good at predicting those. Let's see. from the end of September to the third, the lows weren't too bad. Bad but not horrible. on the sixth, the market broke, and each day since, has followed that pattern. They'll be a ton of calls for several days, and even tightening, like I heard at IB. Another source of supply with no demand. If you go in for more than a trade, you can easily be overwhelmed. Your job is to make it till Tuesday. They'll be plenty of money to be made. http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=djia&sid=0&o_symb=djia&freq=1&time=4 Oh, btw, the public will sell the good stuff to hold the crap. Find stuff that hasn't broken yet.