Stock Market to Open with a Bang!
Filed Under Market Commentary |
The Financial Tsunami continues to flood the streets of lower Manhattan, Wall Street is completely under water. LEH filed for chapter 11 protection last night, which in my humble opinion is what Bear Stearns (BSC) should have done. BAC bought out MER for $50 Billion and AIG is seeking assistance from regulators. What this has done is create the beginnings of a cataclimisic event, but we aren’t for sure if we are going to get it. Futures this morning were down and down big: NASDAQ -50pts, S&P500 -42pts, Dow -335pts. Back in January we did see a drop of this magnitude but we were able zoom back well off the highs. I’ll be looking at how we come off the lows and how the market will react after Monday’s trading session.
It will be rather tempting to hop into the market Monday at the open. The absolute best thing to do is step away from the madness that will begin the trading day. At the moment, there isn’t an edge in the market. If you are short take the opportunity to cover some at the open as you are probably getting a gift that only comes around so often. Regardless, the best thing to do is stand back and let the ill-prepared battle it out this morning.
My time will come for a new bull market where we’ll get stocks move 500%, 1000%, 2000% or more, but for now I will remain patient and let the mongrols duke it out. Monday morning will certainly be entertaining to watch as stocks will fly around.
Good Luck and Cash is King
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