Futures resting around 834 retracement level, lots of air below. I'm guessing chances are we open around that area. Then everyone's going to be hoping helicopter Ben swoops in to save the day.
Maybe it was the dental plan... <object width="512" height="296"><param name="movie" value="http://www.hulu.com/embed/UjlwjSips22lS3JNNXO02A"></param><param name="allowFullScreen" value="true"></param><embed src="http://www.hulu.com/embed/UjlwjSips22lS3JNNXO02A" type="application/x-shockwave-flash" allowFullScreen="true" width="512" height="296"></embed></object>
who knows...if it were that easy then we'd all be worth billions. there is no guarantee we will go up tomorrow either.
For those who will read this in time, check your outstanding buy orders and decide if they are still going to be what you want to do. A month ago, an existing buy order was filled that I had forgotten about. The price was a good distance out of the normal range, but I caught a dip. It worked out for me, but I was fortunate. For others, perhaps there might be a few things that you could catch <i>on sale</i> provided that you have a buy order there to be filled. It might look like a <i>lowball</i> offer when you enter it, but prices might be near that level for a few moments. <b>Be careful.</b>
There is no one answer to this. If you're a daytrader, you may be following closely all day an waiting to pull the trigger multiple times on various stocks. If you're a longer-term holder, you may buy on the gap down (provided it does indeed gap down) and get into positions you hope are cheap. Then again, there are those who are long-term holders who practice the philosophy of never buying or selling during the first 30 minutes after the open. What you do depends on what strategy you're using, not to mention what may happen overnight. Watch what's happening pre-market tomorrow as well - this market can fluctuate 100 points in minutes.
Also, this is usually a good rule of thumb: DON'T TRADE IN THE FIRST 30 MINUTES. There are exceptions to this rule though, and typically those exceptions would be days following a monumental news event like this one. So as for what to do tomorrow morning, honestly nobody can tell you at this point. But I'd say this is always a good rule to follow. Allow the market to find its level first, and then make your trading decision from there.
In my case, if there's a short-covering rally, I'd probably be better off - my short ETFs aren't going to completely offset my other positions tanking. What I'm hoping for most out of a gap down is to at least possibly open new positions or DCA down on other existing ones. Needless to say, I'll be up early.
It's too late to short. You are trying to catch a trend. The market will open lower. You run a big risk of being caught up in a late day rally, when it's oversold.
Sorry but I'm breaking the hell out of this one today! I've got a short from last Friday that was making me sweat bullets earlier in the week and resulted in margin calls that has now finally turned my way. Shorting in this market takes nerves of steel which I really don't have.
FWIW, ES futures hit strong support at 834, and after consolidating all night they're now rising pretty quickly... at 851 as I write this.
No just my own stupid instincts. If I had to guess why it's probably the big flashing message on my screen that Bush is hinting at using TARP to save Big 3.
man, dropping DXO at open would only be a small loss.. but if there is some good short covering, it would be nice to wait on it. i think i'm gonna hafta wait and hope. and if it dips more, i'll have to hold for a good while..
There were rumors on various Blogs overnight about using <i>TARP</i> money. More about the Madoff story........ SCAM'S POSH PATSIES Madoff ‘Big Lie’ Hits Fairfield Sentry, Kingate Funds The hedge funds that had money with Madoff are hosed.
