Markets Continue Spiral - Gold / Oil Spike

America's $47-trillion bubble of debt has burst. America's $180-trillion balloon of derivatives has popped. And all the president's men cannot put them back together again.

Last year, they tried three different mortgage work-out plans. This year, they tried a massive economic stimulus package. They resorted to a myriad of unprecedented lending facilities. They even bailed out Bear Stearns, Fannie Mae, Freddie Mac and AIG. Each attempt was more radical than the previous. And each attempt failed miserably.

Now, appearing before the American people at the White House Rose Garden, they've declared that they're going to try again, this time with an even bigger, more ambitious plan: A structure to buy up the bad debts of sinking banks ... a guarantee for money market funds ... a prohibition on certain short selling activities. And with all this, they say, they're finally going to "restore confidence" and "end the debt crisis." From the Money and Markets .com website

http://www.accesstradingmgmt.com/eBooks-Mags.html

Economic Bailout - is not fooling anyone

The 700 billion dollar bailout is a brave attempt in calming the markets and restoring confidence. Unfortunately, I fear, that it is too little to late, and the markets are agreeing. The rallies of last week, it appears, were just a short squeeze, as traders and investors cover their short positions. Some non -financial listed companies are doing buybacks of their shares, but other than that, there is no real buying/investing, John Q Public is scared and very defensive.

Gold is up again this morning $897.40 + 25.60, Silver is also up sharply +.73 at $13.35. NYSE is down -167, and the Dow down $-220. (11:48am), OIL back to $110, if it breaks above that level and holds, we could easily see new highs $147 or more, let's not forget about Winter and the heating season staring. The US Dollar continues its downward trend

There are indications that 700 Billion is insufficient and that the real totals at risk are much higher. Very interesting article from the analysts at http://www.moneyandmarkets.com/

http://www.accesstradingmgmt.com/index/

Short Squeeze

A short squeeze is under way with the Dow up +400 points. This is primarily a result of the new SEC rules regarding the short sale of securities. Once the shorts are covered, the buying will dry up and another slide should start. I find it doubtful that this rally will hold more than a few days, but it will give hope, to some, over the weekend.

The U.S. Treasury, Federal Reserve and Securities and Exchange Commission said Friday that they were taking action to stem the loss of investor confidence in financial markets.

To shore up the mortgage market, Treasury is also expanding its mortgage backed securities purchase program. Mortgage finance giants Fannie Mae and Freddie Mac will also increase their purchases of the debt.

The Treasury Department said it's going to insure any publicly offered money-market fund, both retail and institutional, that pays a fee. "Concerns about the net asset value of money-market funds falling below $1 have exacerbated global financial-market turmoil and caused severe liquidity strains in world markets," said Treasury.

http://www.accesstradingmgmt.com/Trading.html

Trailing Stops Work

Trailing Stop saves the day - captured about 1/2 the Profits from my P/L high. Got busy and missed the breakout higher but today getting in late still pays with exaggerated and strong directional momentum moves higher. I will continue to have a short bias and and use rallies to re-establish positions. Tighter stops on long positions and wider stop on shorts

A strategy I use when covering an open position is to cover by more then a 1:1 (short 1000/sh buy 1500, or long 1000/sh sell 1500 to effectively reverse your position) it could be costly in a sideways market, but lately the intra-day reversals have had great momentum.

US Dollar rallies and Gold $847 down $3.00 after being up $40, well off the highs of the day

Happy Trading

http://www.accesstradingmgmt.com/ETFs.html

Markets Fading

Markets fading after a weak rally attempt, today. GOLD 874.60 +25.10.
Nyse 7494, Dow 10665, S&P 1157

I will be selling IWM, and keeping a eye on the SPYs and QQQQs, looking for a drift lower over lunch. As always I maintain a trailing stop on any position. No motivation for serious money to come back into the markets, no confidence. Just waiting for the next breaking news story.


Gold should be retesting $1000 level shortly, any move over $900 and a close above, would set that up nicely.

Lots of talk on the "street" regarding Money Market funds, are they in danger?

Another 40-50 billion might be needed to bailout (or what ever term they are using now)
the Auto industry, of interest here is that Michigan is a "battleground State" in this election,
so some type of support seems inevitable. GM approaching $10.00/shr

US Markets imploding

Day trading is the best way to trade these markets. Into cash overnight every night and ready for action every morning. Smaller positions with wider stops intra-day, to take into account the greater volatility. The SMA's cross get on board and ride the move.
With over 20+ years of trading these markets(equity and currency), this is the greatest
combination of negative factors resulting in the collapse of the US financial markets.

I am anticipating a one day, 2000+ pt loss on DOW in a final capitulation of the US capital markets combined with a $100+ dollar spike in GOLD.

ETFs are a great way to take advantage of trading an entire sector without specific stock risk.
XLF, XRT, GLD, SPY, QQQQ, and IWM are some of my favorites.

Happy Trading in these historic times and be careful out there

http://www.accesstradingmgmt.com/ETFs.html