Thursday, November 20, 2008

Stocks Post Record Losses (

16:40 ET
Stocks Post Record Losses
Dow -444.99 at 7552.29, Nasdaq -70.30 at 1316.12, S&P -54.14 at 752.44
[BRIEFING.COM] Stocks took out new bear market lows in another volatile session Thursday. News of continued weakness in labor markets underscored ongoing economic concerns while a lack of leadership gave investors little reason to turn about-face.

The latest jobless data ensure an 11th consecutive decline in monthly nonfarm payrolls. Initial jobless claims for the week ended Nov. 15 jumped 27,000 to 542,000. That took the 4-week moving average to 506,500 from 490,750. Continuing claims increased to 4.01 million from 3.90 million.

Mounting jobless claims continue to reflect a downbeat mood among businesses. Layoffs have been on the rise as many businesses look to cut expenses and regain footing despite tenuous economic conditions.

Selling pressure took the S&P 500 down to 747.78 late in the session, which marked the lowest intraday trading level since 1997. All three of the major indices registered new closing lows.

Several marquee stocks also took out record lows this session. General Electric (GE 12.88, -1.57) dropped to its lowest point in more than a decade. A Dow Jones report indicated the company is not seeking equity investments from sovereign wealth funds, which countered earlier reports. Given GE's depressed stock price, shares now carry a dividend yield of almost 10%.

Citigroup (C 4.71, -1.69) shed a quarter of its market cap, despite word that Saudi Prince Alwaleed plans to boost his stake in the financial giant to 5% from under 4%.

Weakness in the financial sector was widespread. The sector closed 10.5% lower; it is now down 68% this year.

Energy posted the largest decline of the session, though. It shed 11.2% and is now down 46% year-to-date.

The steep declines in energy followed losses in crude oil prices. Crude futures fell below $49 per barrel to reach their lowest point in more than three years. The commodity finished the session near its lows.

Uncertainty, which is an enemy of the stock market, continues to surround auto makers. While some reports indicate senators have reached a bipartisan auto aid agreement with wide support, the likelihood that a bill is approved and passed in the immediate future could be slim. One senator said an auto industry bailout would use existing $25 billion in loans.

Both Ford Motor Company (F 1.39, +0.13) and General Motors (GM 2.88, +0.09) advanced on the news. However, Standard & Poors lowered its rating on Ford Motor (F 1.45, +0.19) to CCC+ from B-, but removed it from CreditWatch.

Hope that auto makers would receive a bailout helped stocks climb to strong gains midsession. The S&P 500 was actually up 1.7% midday. However, stocks turned lower as the plan became muddled and no leader emerged to provide support.

As uncertainty and unease mounted around stocks, government Treasuries caught a strong bid. The benchmark 10-year Note surged 91 ticks and is now yielding just under 3.0%.

..Nasdaq 100 -4.7%. ..S&P Midcap 400 -7.8%. ..Russell 2000 -6.6%.

Thursday Day Trading: ES Short Bonus Trade $1750 per 2 Contracts

Click on chart for comments on the ES market trade.

Good Trades,

David AKA Tiger

Thursday Day Trading: ZB Long Trade $1312.50 per 2 Contracts

Click on chart for comments on the ZB Market Long Trade.

Entry was after the 8:30AM Eastern time Unemployment Claims RED report. My entry time was at 8:35AM Eastern time this morning.

Entry 123^27.5
1/2 Exit at 124^03.5 = $250
2/2 Exit at 124^29.5 = $1062.50

Trade Total $1,312.50 for every 2 contracts traded.

Yesterday, the same type of trade did not work out, but today it did and went on to reach the Upper Average Daily Range. Nice trade today. This will do it for my week of trading, and I want to wish you all the a good weekend.

Important Note: Trading next week during Thanksgiving tends to be a light trading week. My trading plan has me perhaps looking for a trade on Monday or Tuesday. With that being said, next week has proven to be a light week, and I will be only looking for the very best setups, if any trading at all.

Good Trades,

David AKA Tiger

Wednesday, November 19, 2008

Wednesday Day Trading: ZB 1st Bar SR and Long Trade

Click on chart for comments on the ZB Market trades.

My first entry was at 8:35AM Eastern time, and was not a winning trade. This trade lost $250 for every 2 contracts traded, according to the stop loss. Although, I handled the trade differently in my actual trading taking a loss for less money, but for example we will leave it as is to show you how being patient and disciplined will win the day.

On my second entry, it came at 10:20AM Eastern time at 121^01. My trading plan had me take off my first contract at plus 16 tics or 121^09 for a gain of $250. My second contract eventually caught up with the greenline strategy and the protective stop was hit at 121^22 for a gain of $656.25 for the second contract.

Today's Trading:
1. Loss of $250
2. Win of $906.25

Net Gain: $656.25

Good Trades,

David AKA Tiger

P.S. This happens more than you would think. That is you start your trading in the loss column. The new trader like I used to be at one point in time, and if I am not careful even today, will get their blood boiling on a loss, and do stupid things trying to get the money back. Just like in a casino, always remember the HOUSE has the EDGE. Your only defense that you have and strategy is to remain the following:

1. Patient
2. Disciplined
3. Self-Controlled
4. Faithful
5. Confident

Keep this in mind the next time you get the blood boiling and you put on your revenge hat to make the money back. You are falling into the casino trap of losing it all and more!!

Monday, November 17, 2008

Monday Day Trading: ES Short Trade $900 per 2 Contracts

Click on chart for comments on the ES Market Trade.

Good Trades,

David AKA Tiger