Friday, October 10, 2008

Another Video of the Week: One by Metallica

When will the market make a bottom? We are down 50% from the highs of last year ... in one year ... this is beyond ugly now. People are talking about buying opportunities, but all I see is RED on my screen ... even GOLD is down today.

I thought about another video I like when things are going to the crapper called, "Break Stuff," but we are past that point now. Although, I have made money shorting this market down, I would much rather be buying it on the way up. Or at least a more organized market!

The good news, if any, is that we are in the last wave of selling, in my humble opinion. Things will have to settle down at some point, and we will have a vicious Bear Market rally. Keep the powder dry for the weekend, and remember to "TRADE what You SEE Not WHAT You THINK!"

Good Trades,

David AKA Tiger

Thursday, October 9, 2008

Thursday Day Trading: ZB Short Trade $500 on 2 C's.

Click on chart for comments on ZB Market trade. This trade was put on the blog for those that asked to see it. Here you go.

Good Trades,

David AKA Tiger

Thursday Day Trading: ES Short Trade $2250 on 2 Contracts

Click on chart for comments on the ES Market trade.

This trade was worth $2,250.00 on every 2 contracts traded.

Entry at 960.50

1/2 Exit at 954.50 = $300

2/2 Exit at 921.50 = $1950

Total on 2 contracts = $2,250.00

Round and round we go, where we stop who knows? This by far has been the best week ever to be a day trader for me. I have never seen the markets move the way they are moving and allowing so much money to be made. This is simply incredible, amazing, and scary all at the same time.

I suppose having a system or trading method that I am confident on is my only sanity that I have ... "Trade What You See, Not What You Think."

Good Trades,

David AKA Tiger

Video of the Week: Helter Skelter by U2 (version of Beetle song)

Wednesday, October 8, 2008

S&P 500 Posts Sixth Consecutive Loss

16:20 ET
S&P 500 Posts Sixth Consecutive Loss
Dow -189.01 at 9258.10, Nasdaq -14.55 at 1740.33, S&P -11.29 at 984.94
[BRIEFING.COM] Stocks traded in an extremely volatile manner on Wednesday as investors digested a coordinated global interest rate cut, economic concerns and turmoil in the financial markets.

The S&P 500 settled with a loss of 1.1% after a surge in selling interest in the final half-hour of trade sank stocks from a 2% gain. The S&P 500 traded as high as 2.5% and down as much as 2.5%. Eight of the ten economic sectors posted a loss in heavy trading volume.

The Federal Reserve, European Central Bank, Bank of England, Swiss National Bank, Bank of Canada, and Sveriges Riksbank (Sweden) made an emergency intermeeting coordinated 50 basis point rate cut. Increased economic risks and moderating inflation pressures warranted the move in an effort to improve liquidity and reduce strains in the financial market, the Fed said. The fed funds rate is now at 1.50%, and the discount rate is at 1.75%.

The move to cut interest rates came as global equities tumbled due to tight credit markets and economic worries. Japan's Nikkei plummeted 9.4% and Hong Kong's Hang Seng dropped 8.2%. Europe fell 6.0% as its financial institutions remain troubled -- Britain announced a plan to bailout its banking system, which included a pledge for $87 billion in direct support for eight major banks, according to reports.

In corporate news, Bank of America (BAC 21.97, -1.80) fell 7.6% after its $10 billion common stock offering was priced at a 7.5% discount to yesterday's closing level and a 31.7% discount to BofA's closing level on Monday. BofA plunged more than 25% on Tuesday after announcing disappointing third quarter earnings, giving a dour outlook, cutting its dividend by 50% and announcing the $10 billion common stock offering.

The financial sector (-3.0%) ended the session as a laggard after giving up a 3.9% gain in late-session selling pressure as investors were aware that the SEC short-selling ban is scheduled to expire at midnight tonight.

Dow component Alcoa (AA 14.60, -2.11) marked the start of the third quarter earnings season on a negative note after the aluminum maker's results fell well short of expectations. Third quarter earnings per share dropped 40% year-over-year due to falling aluminum prices, softening demand and higher costs.

Despite the weakness in Alcoa, the material sector outperformed with a gain of 2.6%. Agriculture chemical company Monsanto (MON 81.63, +7.45) pleased investors with its quarterly earnings report.

Several retailers reported a decline in September same-store sales and cut their third quarter earnings outlook. Wal-Mart (WMT 54.57, -0.27) and Costco (COST 56.89, -0.91) both posted solid growth, however, benefiting from bargain-hunting consumers.

In commodity trading, oil prices saw large swings, moving largely in tandem with stocks, as traders speculated how the global economic turmoil will impact demand. The government's weekly energy inventory data showed larger-than-expected increases in crude and gasoline stockpiles. Oil prices fell 1.6% to $88.64 per barrel.

Despite the economic turmoil and uncertainty, Treasuries came under selling pressure after the government sold additional debt to meet high investor demand, according to reports. The 10-year note dropped 46 ticks to send its yield up to 3.67%.

The S&P 500 has posted six consecutive losses -- the longest losing streak since 2002.

..Nasdaq 100 +0.1%. ..S&P Midcap 400 -1.2%. ..Russell 2000 -2.2%.

Wednesday Day Trading: ES Spike Reversal Long Trade $3650 on 3 Contracts

Click on chart for comments on the ES Market Trade. This trade hit it out of the ballpark today, and was advised on to my list on how I was handling this trade.

I showed how I handled 2 contracts, and how I was handling a series of 3 contracts in the market today. In any case, 2 contracts made $2450, and 3 contracts made $3650.

My combined trading on ES and ZB today was worth $5,306.25.

I was debating on getting back into a long position on the ES today, but time stop hit, and the market decided to sell off, so I stood aside, as I was not going to participate on any shorts today.

To receive my live trade updates, simply fill out the form on the right. I promise not to sell or spam you with crap you don't need, and neither do I! :-) I have been debating personally how best to help you as a trader or an inspiring trader. Just so you know, I am open to suggestions, please send them to:

Good Trades,

David AKA Tiger

Wednesday Day Trading: ZB Short Trades $1656.25 on 2 Contracts

Click on chart for comments on ZB Market Trade.

There are 2 trades today in the bonds. I will be adding the ES Trade today next.

Good Trades,

David AKA Tiger

Tuesday, October 7, 2008

S&P Plunges Below 1000

16:20 ET
S&P 500 Plunges Below 1000
Dow -508.39 at 9447.11, Nasdaq -108.08 at 1754.88, S&P -60.66 at 996.23
[BRIEFING.COM] Tuesday marked another ugly session for stock investors as a weak outlook from Bank of America (BAC 23.77, -8.45) and cautious comments from Fed Chairman Ben Bernanke overshadowed a Federal Reserve plan to improve liquidity in short-term corporate borrowing.

Stocks rose 1.5% at the open on the Fed's plan to shore up short-term corporate borrowing, but overall economic concerns quickly sank stocks. In the end, the S&P 500 plunged 5.7%, settling at its worst levels, to a new five-year low in broad-based weakness. All ten economic sectors posted a loss, with notable declines in financials (-11.5%), tech (-6.1%) and consumer discretionary (-5.7%).

Fed Chairman Bernanke gave the market little to cheer about in a speech at the National Association for Business Economics annual meeting. He said that economic activity is likely to be subdued through this year and into 2009 and increases in financial market turmoil may extend the period of weak economic performance.

He did leave the door open for a FOMC rate cut on Oct. 29, although fed funds futures had already priced in a cut of at least 50 basis points.

Bank of America, the second largest U.S. financial firm by market cap after JPMorgan Chase (JPM 39.86, -4.14), fell 26% after preannouncing disappointing third quarter earnings and giving a dour outlook regarding the state of the economy. In an attempt to shore up capital in the face of current economic conditions, BofA is cutting its quarterly dividend by 50% to $0.32 and plans to raise $10 billion in a common stock offering.

CNBC reported the common stock offering was likely to be priced at less than $25 per share. The notion that BofA would have to sell stock at a more than 22% discount added to overall investor unease, especially in the financial sector.

The commercial paper market, which many U.S. companies rely on for short-term borrowing, has been under pressure as investors flocked to the safety of Treasuries and away from money market funds. As a result, many companies found it difficult to issue commercial paper, or had to pay a high cost.

In an attempt to bring down the cost of commercial paper costs and improve liquidity, the Fed announced this morning that it created a Commercial Paper Funding Facility, which will provide a liquidity backstop for the strained commercial paper market. The Fed will purchase three-month unsecured and asset-backed commercial paper from eligible issuers. The Fed said it has no limit to how much commercial paper it can buy.

Separately, commodities (+1.0%) staged a modest recovery effort from Monday's 5.0% drop, aided by a 0.8% decline in the dollar. Crude prices rose 2.3% to $89.80 per barrel.

The S&P 500's loss marked its fifth consecutive decline -- its longest losing streak since January. The index has fallen 14.5% over the past five sessions and is down 32.2% this year.

..Nasdaq 100 -5.8%. ..S&P Midcap 400 -5.4%. ..Russell 2000 -6.2%.

October 2008: Book of the Month

This is a book that I am highly enjoying reading right now. Like the classic, "Market Wizards," this book takes you on a journey of interviews with successful traders from all walks of life, but a lot of these traders are self-made.

I highly recommnend that you add this book to your collection. I have placed a link here for easy access over at

Good Trades,

David AKA Tiger

Video of the Week: Take A Chance by ABBA

For my wife: Take A Chance by ABBA

Tuesday Day Trading: ZB Short Trade $968.75 on 2 Contracts

Click on chart for comments of ZB Market Trade.

Entry at 9:05AM Eastern Time at 120^31
1/2 Exit at 120^23 = $250
2/2 Exit at 120^08 = $718.75

Total on Trade for every 2 contracts traded: $968.75

On close of the trading day, the S&P went to a lower low than yesterday, so we tested the low. Where we go from here ... who knows ... but a world wide rate cut would be warranted to keep us from the stone age now.

Good Trades,

David AKA Tiger

Monday, October 6, 2008

BlacK Monday Day Trading: ES Short Trade $3775 on 3 Contracts

Click on chart for comments on the trade.

Total on 3 Contracts = $3775.00

Entry at 1068.75 @ 9:45AM Eastern Time

1/3 Exit at 1062.75 = $300
2/3 Exit at 1039 = $1487.50
3/3 Exit at 1029 = $1987.50

Total on Trade = $3775 on every 3 contracts traded.

ZB Trade: $3000.00
ES Trade: $3775.00

Overall Total $6,775.00 on every 3 contracts traded on each of the markets in ES and ZB. There was a nice rally into close that I did not participate in, but was looking for in my trading plan. My thoughts coming into the last hour and a half was we were going down at least 1000 points in the DOW or we would close 250 points down in the DOW, or a rally into the close.

The rally into the close happened today, and one of my favorite trades to make, but with me making historically my best trading day ever today, then I was not willing to give back my gains based on my 3 contract trading strategy today.

Awesome day today! Hopefully, we can get back to more normal trading in the near future, these kind of days are exciting, but this kind of trading is very, very tough. Today was a great day to be a day trader.

Good Trades,

David AKA Tiger

Black Monday Day Trading: ZB Long Trade on 3 Contracts for $3000.00

Click on chart for comments on the ZB Market trade.

Total $3000.00 on 3 Contracts today
Entry at 9:05AM Eastern Time at 120^19.5

1/3 Exit at 120^27.5 = $250
2/3 Exit at 122^02.5 = $1484.38 (off ADR upper daily range)
3/3 Exit at 121^28 = $1265.63 (Greenline Exit)

Good Trades,

David AKA Tiger

Part 1 ZB Trade
Part 2 ES Trade