Good morning all..

Just came from breakfast and been talking about this crazy day with my colleagues as well.

Yeah.. some freaking idiot fat finger a number somewhere... causing massive sell off.

Besides ACN, take a look at PVX... no way it is 1c too.

Look at EXC... $0.00 ? FREE!!!

Anyway, this "glitch" gave us a rare glimpse into a "what-if" scenario.

The big boys have this algo in their high-freq computers already and if the Dow drops off 1000 points, and SPX 100 points (~10% drop) to the next support level (now we know what it is), what's will be the price of your current fav. stock?
Use this info and plan accordingly.

Not that it will happen again but it could happen if this crazy Greece fears continue.

Update:
Here's the list of stocks that will have their transaction canceled if it is <60% or >60% threshold.
http://media.globenewswire.com/cache/6948/file/8211.htm

None of my that I got is on this list.

Good luck to all!

This post has been edited by danmooncake: May 7 2010, 11:19 AM

You nail it there.. the big boys who in charge are showing that they're control. At a push of button they can crash this market.. and they can bring it back up. Just like that to test who still standing..

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Added on May 7, 2010, 7:54 pmMargin call will happen. Those traders who got sell stop limit at various stage who got taken out over 60% will get their reimbursement but anything below that.. tough luck.. it is their loss.

I got two trades taken out and it out of the 60% limit. I don't expect reimbursement but I got other short sell gains that kicked in to offset the loss and two other long calls that got executed during the dive. No big deal as long as they don't cancel my transaction.

This is the price we have to pay to play their game.

Anyway, like most have now has noticed, if the situation in Europe gets any worse.. the next biggest dive to the next support level will be like the lows of yesterday - Dow ~ 9800, SPX ~ 1065. This test give you a preview of your low stocks level. Be prepare..

Get those limit orders in place now!!

This post has been edited by danmooncake: May 7 2010, 07:59 PM

Battle of the bulls and bears part 2. Tonight is good for day trade.

In AAPL 230 (this is a bargain, you know it)
In CSCO 24.35 (same here)

In ERX 32.60, Out 35.50
In SSO 36.70, Out 38.80

Sold X 53, 3 pts gain from yesterday entry.

Got more STEC 12.50.

I'm scalping here.. if market will turn south later, I'll get more for daytrade.

C is danger zone if falls below 3.90 - watch it carefully. Bulls will try to push above $4 for support.

Bulls: Aim much lower to buy.
Bears: Wait for SPX to close to 1130 and hit it again. Put stop right at 1100.

This post has been edited by danmooncake: May 8 2010, 02:49 AM

Do it both ways..

LONG and SHORT at the same time (make sure different entry) with slightly bearish bias.
Market is moving back and forth now.. but slightly incline downwards.
but, momentum has slowed. I will slowly exit or lighten up on my bear stocks if we hit 1100 or below.
Perhaps don't short using ERY if it is not working 'coz ERX is pretty good support right now.

SSO and SDS work for me.

Closing update
Dow 10380.43 -139.89 -1.33%
Nasdaq 2265.64 -54.00 -2.33%
S&P 500 1110.88 -17.27 -1.53%

Well, it is second week..we closed in red. Shall we go for 3rd or do we have enough yet? (Just kidding.. )

Anyway, some of you who are stuck and in red and need help or suggestions during this down cycle,
don't be afraid to post your trade or ask for suggestion before you decide to cut heavy losses and call it done.

In times like this, some of us may be able to help.

Good luck to all, and safe trading next week!

This post has been edited by danmooncake: May 8 2010, 06:43 AM

Do not be surprise that the bears want another leg down to Dow 10190 or SPX 1095.
Just another 2% to go.

There are also talks about Dow 9800 or SPX 1060 which may become a reality (also was the stress test for us last Thursday during the supposingly 'glitch' ). If we see Dow 9800.. then be prepare to see Dow 9000 as the next support (this is serious! )

Just be careful...

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Added on May 10, 2010, 11:42 amGood question..will we see 11K first or 10K first?
We're just 380 pts away from 10K and we saw that a very brief 2-3 mins last Thursday during the 'glitch'. nod:

This post has been edited by danmooncake: May 10 2010, 11:56 AM

Time to cover all shorts.!!
This bounce is going to be big at opening.

If we trade above 10700 or SPX 1150.. then bulls will accelerate..

Sell half of ING 8.56, since up already 11%.

Be ware of bull teaser.. or bull trap. I think it going to be volatile one.
A lot will be selling into this rally.

Sell.. don't buy.

Not short as in "short selling" yet but sell some of longs that was overbought from pullback or reduce
some position if already above average to reduce risk.

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Added on May 10, 2010, 9:43 pmGot some at 57 last week hey?



This post has been edited by danmooncake: May 10 2010, 09:43 PM

Same here... .

I sold some ERX for day trade last week.. kept my TCK, now over 10% gain, I'll unload some if we're near 40,
already over 250% overbloated.

Here's an interesting thing: Both the Dow and SPX did reached over 10% pull back from the highs (April 26) to Friday (May 7) intraday low (I'm not counting the human-triggered computer 'glitch' on Thursday evening). That's the same target when we had a correction from Jan to Feb. The thing to look for tonight is if we can close above 10720 or SPX 1150 for this market to be bullish again.

This post has been edited by danmooncake: May 10 2010, 11:05 PM

Hope you got out from ERY. This thing is taking a huge beating today.

Zamans - with all the profits you're raking in.. I think you've afford a much better Internet indeed.

Both X and C are long term stocks.. you'll do ok with them.

Trailing stops in place.. If we drop off 10700.. or SPX 1150.. look out below.

Closing update
Dow 10785.14 +404.71 +3.90%
Nasdaq 2374.67 +109.03 +4.81%
S&P 500 1159.73 +48.85 +4.40%

Wow! Very nice closed (much higher than I expected). I walked away for meeting at 3am, came back after market close,
bulls managed to maintain 10700 and 1150 and higher.

Well, Z - you'll probably get your 11K soon, perhaps in one or two more trading sessions only if the market can break above 50MA by tomorrow. , 'coz trap door still here...it is not locked.

This post has been edited by danmooncake: May 11 2010, 07:26 AM

Sure.. 1 trillion is not going to solve their problem if they continue to party and be care free nation.
Therefore, they got 2nd thought. Buckle up and let see how it goes..

Lots of good opportunities for some badly battered good stocks to go long here.

Update: Someone asked me what are some of those longs that I would be looking at during market panic:

Here's what I'm looking at some of these, holding them over much longer timeframe (quarters/years):
AAPL, CSCO, CAT, TM, YUM, MCD, KMP, GE, GLD, VTI.

I don't swing or daytrade those above.. just accumulate during big dips - like last Thursday/Friday.
Every quarter, I project that we may have up to 5% to 15% pullback from the highs (Dow/SPX). Just calculate a price point relative to the general index and set a BUY order (in small position by scaling in) for them.

I'll be adding C to the above list soon (if it can maintain price over $4 over at least two quarters).

I'm also looking at BP - finally broke down below $50 - way over sold now.
If it is closing to 52weeks low (approx $4 from here), I'm a buyer.

This post has been edited by danmooncake: May 12 2010, 09:37 AM

The 2nd V shape - difficult to predict when. Just leave some ammo on the table and be prepare to use 'em.
Just scale in the position - don't get tempted to push BUY all now. There's always another trap door beyond the first one.

Closing update
Dow 10748.26 -36.88 -0.34%
Nasdaq 2375.31 +0.64 +0.03%
S&P 500 1155.77 -3.96 -0.34%

Well, the market gave back some today after the big gains yesterday.
Not a whole lot but still good enough to start a base.

But, materials and mining gave back half of that they've taken. Partly because most of them have gained over 10%.

Except for Gold stock (GLD), it rallies really good today. That's means fears still in the market.

IMO, Oil is a buy at this price $75-$80. Below $75 is even a better buy.
If over $80, with the uncertainty in Europe persisting, probably not.

I think BP may touch $45 or $46.. I'll nip some there.

By the way, I've watched Mary Shapiro (head of SEC) testified at the House Financial Services subcommitte.
They still do not know exactly what has caused the massive flash plunge last Thursday.

Perhaps the Anti-PPT sneaked in and sabotaged the market..

This post has been edited by danmooncake: May 12 2010, 09:45 AM

Whee!!! Time to unload my other half.