Online Stock Trading | Stocks on the Verge of Collapse Again

Stocks on the Verge of Collapse Again


Filed Under Market Commentary | 7 Comments

Nationalization and depression fears sends stock teetering on the verge of collapse.

Despite the White House’s best efforts it could not save the market from ending in the red Friday.  Expressing the need to have the banking system privatized, President Obama re-affirmed this view just as stocks were about to take out November lows.  Excellent timing for the new administration, but nationalization or not the banking system is effectively insolvent.  The end game will result in the equity stakes in banks will be wiped clean and a new form of banking system will need to be formed.  Stocks will certainly price in whatever the situation may be and it will give clear signs of what we’ll look like 6 to 12 months down the road.

It is far too dangerous to make an all in bet to get long here.  Investing is a tough business, if you are trying to day trade its best you keep losses small.  Day Trading is a tough game and you must follow your plan and execute.  Deviating from your plan will cost you your capital.

Gold and Silver continue to be strong and are showing signs of being OVERBOUGHT.  Its best not to chase, but try to pick up on pull backs.

I annotated a few charts, check them out:

2009-02-20_sp500_daily.png 2009-02-20_ugl_daily.png

Keep positive and cut losses short.

Market Speculator

Positions:  UGL

Last 5 posts in Market Commentary

Share and Enjoy:
  • Digg
  • del.icio.us
  • Netvouz
  • description
  • ThisNext
  • MisterWong
  • Wists
  • Bumpzee
  • StumbleUpon

Comments

7 Responses to “Stocks on the Verge of Collapse Again”

  1. Stocks on the Verge of Collapse Again : Monster Stock Trader on February 23rd, 2009 3:00 pm

    [...] Stocks on the Verge of Collapse Again Share and Enjoy: [...]

  2. Massive Market Downturn: Obama Economy headed towards Severe Recession « Dirty Democrats on February 23rd, 2009 10:38 pm

    [...] Market Speculator Blog [...]

  3. David Succaria on February 23rd, 2009 10:38 pm

    A chart showing an instance when a method might have worked is NOT a method. For what it’s worth, my experience has taught me the following lessons. You cannot follow a system unless you are it’s creator and have tested it extensively. When systems suffer their eventual adversity and drawdown period, and they all do, it will tests your metal and “stick to it ness” to no end. To stop trading in these tough times usually always means ending in failure. To be the developer, quant and creator on the other hand is the only way to get this strength. Get yourself a good porfolio level backtesting engine like Amibroker Pro and a high quality historical dataset like from these guys http://www.forextickdata.com and begin your journey.

    Best of luck with your trading endeavors.

    Cheers – David

  4. sj on February 24th, 2009 5:46 am

    Hi There,

    Do you care for a link exchange, so our fellow readers can enjoy each others post..

    my blog: http://rantaboutit.blogspot.com

    Let me know.
    Thx

  5. Market Speculator on February 24th, 2009 7:02 am

    Hi David…

    Sitting on the sidelines is not failure, simply stepping aside when the market offers you a terrible risk reward is not failure.

    CANSLIM!

    Go search for the new study done by AAII. Ranked CANSLIM the best growth strategy since 98 (thru 12/31/2008).

  6. Author_Ego on February 25th, 2009 1:39 am

    David,

    Sounds to me like you are trying to re-invent the wheel. CANSLIM is simply based on detailed and extensive studies of market history, studies that now extend all the way back to 1880. So it’s already been “back-tested,” as it were. And the research is available to anybody. That journey has already been undertaken. CANSLIM is not a system in the sense you mean it, however. It’s history. The rules are based on how the market has actually functioned for over 125 years.

    Good luck with whatever method you create.

    John Ward

  7. Author_Ego on February 25th, 2009 1:48 am

    David, I’ve also just noticed that you tend to post the same comment over and over on other blogs, including these:

    http://www.blogcatalog.com/blogs/forex-trading-blog.html

    http://daytrading.about.com/b/2008/11/28/review-of-short-term-trading-strategies-that-work.htm

    http://www.mathworks.com/matlabcentral/fileexchange/18458

    The “gents” over at forextickdata must love you. Try to at least change up your posts somewhat should you decide to spam other sites….

    Cheers

Leave a Reply