October 10 2008 The Stock Markets most Volatile Day Ever recorded

A look at the VIX and YM (dow) charts.





CNBC Video October 10 2008,Market close

Video chat rooms at Ustream

October 10 2008 The Stock Markets most Volatile Day Ever recorded

A look at the VIX and YM (dow) charts.





CNBC Video October 10 2008,Market close

Video chat rooms at Ustream

Crazy Stock Market Day

Undoubtedly, there was huge sums of money lost and made today. I cut profits too soon twice today which cost me probably 2k in profits(Hold the trade until you get a reversal signal). I also put on 2 bad trades that weren't based off signals and it cost me some lost profits. Today was a great day to use momentum strategies, a strategy day traders love. I made a good amount of money today. No records broken, but a good day nonetheless.

Crazy Stock Market Day

Undoubtedly, there was huge sums of money lost and made today. I cut profits too soon twice today which cost me probably 2k in profits(Hold the trade until you get a reversal signal). I also put on 2 bad trades that weren't based off signals and it cost me some lost profits. Today was a great day to use momentum strategies, a strategy day traders love. I made a good amount of money today. No records broken, but a good day nonetheless.

FED owns Wall Street

Mergers and acquisitions. Make no mistake about. Wall Street will never be the same.
The FED now owns Wall Street.

FED owns Wall Street

Mergers and acquisitions. Make no mistake about. Wall Street will never be the same.
The FED now owns Wall Street.

Scarred Shitless

I have no clue where we will go. The fear is high. The type of fear you see at lows.
My thinking is that if WaMu goes under, like the rest of the failed institutions, then there will be a run on the banks. The problem is the FDIC doesn't have enough money to insure a bank that big.
The FDIC even said that, the writing is on the wall. The Russian stock market is crashing.
If Wamu goes, expect a US stock market drop and the US dollar to drop.

Its time for the Call of the Warriors


Good luck everyone

AIG bailout- help save the world

I can't help but laugh at the auctions going on at Ebay. Last night I saw an auction for Lehman Brothers for 99 million. This one is even better. AIG save the world Bag

The Sellers name is hopingforseverance and this is the description of the Bag-

"As you may have heard, an AIG collapse is imminent and would cause a catastrophic global economic depression. In order to stave off such a catastrophic event AIG needs $20 Billion in capital. Therefore, to rescue the world from this debacle, I am auctioning off this authentic AIG Emergency Bag in hopes of raising the required $40 Billion. This very stylish bag can be used as a backpack during both emergency and non-emergency situations and can hold up to $75 Billion (must use really large denomination bills) which is exactly the amount needed to salvage AIG from ruin. Although not photographed here, the bag comes with a pair of goggles and a gas mask issued to me on orientation day at AIG. The gas mask is unused, however I did put the goggles on a few times and run around the office (Christmas parties, Wednesdays, things like that)."

In real news- The Government is Bailing out AIG for $75 Billion.
"The Federal Reserve said Tuesday it would provide up to $85 billion in an emergency, two-year loan to rescue AIG, which teetered on the edge of failure because of stresses caused by the collapse of the subprime mortgage market and the credit crunch that ensued. In return, the government will get a 79.9 percent stake in AIG and the right to remove senior management.")(Reuters)

Stock market will rally Video

Shocking!


Edit: Dam, that is the wrong video.

Don't worry people. I'm sure there is a video out there that will tell you everything in the stock market is fine, I just can't seem to find it right now. Time to go workout on the Gazelle. Be back later.

What happens if my Broker goes bankrupt?

Your stock portfolio holdings or mutual fund value depends on the stock market values of all the stocks held in the fund, so you are fine unless the US stock market crashes. If your Broker files for bankruptcy over the weekend and you can't trade because your broker is out of business, you should be able to transfer your holdings to another broker.

If your broker goes bankrupt then the SIPC (Securities Investor Protection Corporation) will replace up to $100,000 in cash and $400,000 in securities. SIPC is a nonprofit, private organization that insures the assets of customers of broker-dealers registered with the SEC (Securities and Exchange Commission) . To see the fine print check the SIPC website.

This leads into the question, what happens if my bank goes bankrupt? You are insured up to $100k as long as the Bank if FDIC insured. However, do you want to deal with the hassel of waiting in line if there is a run on your bank. The strongest survive theme applies here too, WaMu customers are leaving and going to Bank of America.

What happens if AIG goes Bankrupt? Your broker is suppose to have reserves set aside encase they go belly up. If the reserves are not big enough to handle the claims, then there are state guaranty funds that should cover the claims. To see how much your covered by your state if your broker fails, check the Annuity Advantage Website.

To see the fine print on the Guaranty laws check the The National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) website.

Weekend holders

I hope you all learned something from when I held over the weekend and made my famous blowup video, because this looks like another repeat.

The stock market ruined my life

Stock Futures Trader losses it all and flips out - Watch more NSFW

For those that didn't see the video when it originally aired January 22, 2008, I lost over 30k holding a trade over the weekend being long the stock Futures indices. I was overleveraged, but I never thought the market would go limit offer(Dow Futures down 650pts) with the US markets closed on Monday in observation of Martin Luther King day. I sold my long before the market opened due to a potential margin call that would have liquidated everything. On Tuesday, the Fed did a surprise interest rate cut, and the market popped 500pts. Here is one of the posts from January.
The Dow dropped close to 1000pts in 3 trading days.


For the record I went long 10 ER2 contracts into the close on Friday. With the intention of holding until market open on Tuesday.........Bad Choice,,,,Clearly....

Some weekend links

Burqa (Burka) Arbitrage- Funny stuff from Long or short Capital

“$500k” Gold Digger Gets Slammed- More Fun stuff from Bankers Ball

The Bag Will Not Inflate, And Liquidity Will Not Be Flowing - Hussman weekly analysis

The 1987 Stock Market Crash-A look back at the crash by Lope Markets

Smoking animals-
Smoking Dog

Just Laugh

HOLY CRAP Feb 27 daily chart

Well, I traded today, terribly to say the least, but still positive. I kept my composure and ended with the same profit as yesterday, kinda weird. I wasn't use to the volatility and found myself adding to losers, good thing I was right about holding on to some of my trades. I really need to work on just exiting a trade if it doesn't go my way within a few seconds after I enter. Maybe I should make as many trades a day as I can to get more experience like Dr. Steenbarger talks about in his book to advance my skill level, of course I would be doing this on the simulator until I get better. I really want to trade tommorow from the increase in volatility, but I realize at this point that I'm missing something to my trading that makes me the mediocre trader that I am. I'm missing the big picture and the skill to cut losers in seconds after entering them if need be. I should never be in a position that is more than 1.4pts against me when trading ER2, not even 0.7pts. The hardest thing for a trader is having a profit for the day and then going negative. You will fight back as best you can, but sometimes you just aren't on your game and you can self destruct if you don't set yourself with a risk limit for the day.

I have a feeling to go long, call me crazy, after the dow drops 500pts intraday, who would want to go long? I'm looking at crude oil, and its at where it opened for the day after spiking up 2 dollars intraday. If your good at trading then these times are golden. Why am I thinking to go long? Well, tell me why oil is not up and why gold sold off today? Bonds sold off all day today and the VIX looks like a ramp that evil kenivel would ride his motorcycle off of to the moon! I've been watching the relationship between oil, gold, bonds, and certain etfs, and I'm begining to think that there may be better strategy for me to trade than trading index futures. Right now, the problem is time, and getting experience to test my ideas. I need to write out a goal for what I want and I need to accomplish one goal at a time and move on to the next. I need an organized setup to my research and I need real time experience in order execution for scalping profits.

World market plunge

CNBC video of the markets dive.