I Have Feeling

The Fed will not stay quite for much longer. They will not allow these markets to free fall in this manner for much longer. An emergency rate cut is in the works, you can be assured.

VIX Monthly Chart Since 1990

Classic Images: Off The Yahoo Front Page

VIX Update

US Dollar Topping Out?

Short Setups and Breakdowns

Barring Any FED Rate Cut Or Major PPT Maneuvering....

....I expect the indexes to meltdown this week. VIX should spike into the 50s as panic rips the tape to pieces. Financials looks poised to breakdown from this nasty looking triangle. The markets are not happy right now, it's as simple as that.

A Previous Post Revisited: How The 2002 Bear Ended

http://theimpatienttrader.blogspot.com/2008/03/thoughts-on-markets-bear-markets.html

Short Setups

BE Very Careful PLEASE.

I cannot stress this enough. I have traded thru 1998 market downturn(that was kind of short lived but very scary) and I also traded thru the 2000 bear and that was long(2 years) and very very scary and I recall many many folks on CNBC and other places saying things like: "everyone is negative, so i am bullish" or "All this negativity is making me bullish". NO! NO! NO!
Listen: Your idea is correct in theory but be very careful about being the EARLY BULL. There are times when as bad as sentiment is, it will surprise you and get even worse until LITERALLY every bull has ran out of the building and Literally ALL hope is lost, LITERALLY. Think about ehat i am trying to say here: The WORD LITERALLY is key here. BEAR markets are very very scary and emotions are extremely negative and the moves up and down are HUGE. This downturn we are seeing right now, in my eyes is THE MOST SCARy out of all of the three i have traded thru. This one is hitting home and it is hitting the life line and the viens that feeds the system, credit and banking. We are dealing with a complately different animal folks, so take off your bull hat and bear hat and start thinking like a trader. A TRADER will be ready to exploit ALL conditions and will change his stance on a moment's notice. Traders will survive this.

happy trading.

Just A Gut Feeling

I have this gut feeling that the bailout bill will NOT help this market. Like I said earlier on WallStreak i have been trading mainly using instincts and gut feel as i feel charts and technical charting is not working in this environment. I have a gut feel that we could see and nasty days ahead in the markets in October. I hope to GOD, i am dead wrong on this one, but i just thought i'd share my gut feelings.

Happy trading to ALL.

Trading The Open: Why Trading The Open Can Yield Nice Profits

Trading the open is my favorite time to trade. That's when the imbalances between the buyers and sellers is highest imo. Bulls are nervous, bears are nervous and volatility is high and if you are fast, astute and can make quick decisions in the early morning than this time frame could be very rewarding. The open and the close of most sessions will do one of TWO things: Either A: The trend will reverse or B: The trend will accelerate. If the market is selling off or gaps down at the open for example, then Either the selloff will accelerate or reverse shortlt after. Your ability to spot reversals and pattern recognition to pinpoint flags, pennants, tails etc etc will also help in determining whether you are dealing with a reversal or trend continuation. I also AVOID trading after the first hour, cause that's when you'll mostly choppy conditions and that's what'll frustrate and eat up accounts.


Here's a Case Study using MEE over the past few days.