Fear The Future Radio

Futures up a good bit this morning, considering how much the markets sold off yesterday futures are up decent. We may see an initial run upwards, but the charts still look pretty bearish. The President tried to reassure that things will get done, we think that they eventually have to do something, but there still looks to be more downside action before the upside action resumes. And if there is any kind of rescue plan that gets done, will it really cause the markets to start running to the upside? We think not so fast, if you look at larger time frames we’re still pretty high in prices, so that means we still have some retracing to do downwards. But in the near term the band aid may help.

What we’re watching today:

Continuing to watch precious metals such as gold plays(GG, GLD, GOLD) and silver plays(slv).

The solar sector may be an interesting one to watch as well. FSLR, LDK, SPWR

Still play things smarter as these markets are just crazy lately. Trade Smart!

Futures way down yet again this morning. I guess the street really knows how to play the retail traders. I know a lot of traders who were getting into long positions on Friday in anticipation for the “bailout” plan over the weekend. The plan looks to almost be in place, but the markets are taking yet another large beating this morning. We’ll have to see how things shake out, but those who got in on Friday are not going to have to either sit tight and hope the plan when fully digested lets them catch some sort of a rally, or else be ready to take their losses.

WB also gets their deposits taken by Citibank. The scary thing is WB was the 4th largest bank. This may just be a band-aid plan as opposed to a bail out plan. Be very cautious if you decide to trade today. We’re going to sit tight and just watch how things shake out. We are watching SLV and GG though as precious metals may be in play.

Oh yeah, so what do the WB’s have in common?

OK, hopefully that’s not fully the case here, but wow from 10 to under $1…

Futures WAY down this morning. Looks like we may have to wait til next week to see if the bailout plan comes to any resolution. The President is going to address the nation at 9:35 this morning so we’ll wait and see how the markets react to this. We’ll keep you posted…

Futures up a bit this morning. After the President’s address last night everyone will be watching the indexes today. Only 2 days left in the week and also 2 days til Friday which is when the Gov’t said they want this deal done by. Will the Democrats and Republicans reach an agreement? Will Congress “act swiftly” and reach agreeable terms to what’s being proposed? Stay tuned…

What we’re watching today:

The indexes of course! If the plan goes through we could see at least a spike in the markets, which could lead to short covering as well. If delays, the markets may continue to sell down a bit to lul things as there’s still a lot of fear which would also lead to panic if things don’t get done. Whether you like the President or not, his speech last night was pretty good.

Also watching MT today. Looks like if it can get over 59 and stay over it, it may have traction to 63 range.

Trade smart!

Futures starting up this morning. We’re still being on the cautious side of things, but we’re starting to think building up positions on the long side could pay off in the near future. With the Fed’s bailout plan still getting debated by Congress, we’re starting to see some big money from other areas coming. To have Warren Buffet come in and put down 5 Billion in isn’t chump change. This could be a telling sign that you better have some long positions if things turn around. And if Congress does pass things by the end of the week, the markets may see another jump to the levels it gapped up to on Friday.

Here’s what we’re watching:

AAPL – It could see some big movement in the coming days if we do start to rally, but if the street still wants to hammer it, of course the 110 range isn’t out of the picture.

GS – On the Buffet news it’s worth the watch.

Also keep an eye on solars(ENER, FSLR, ESLR) and Potash companies (POT, MON, MOS), as they’ve also been very volatile lately.

Futures slightly down this morning, on the heels of the fed speaking to Congress this morning. The markets don’t look like they think things will work and the sell off has continued. Be very cautious. Markets look like they’re going to continue to sell off unless we really get some word that things are going to stabilize. Alot will depend on if the Fed has anything to convince Congress that this is the way to go.

What we’re watching today:

Just the markets as a whole, keeping an eye on the major players like AAPL, GOOG, BAC, JPM. As these will be the leaders if the street finally takes what the Fed is trying to do on the positive side.

Remember Trade SMART!

Futures WAY WAY up this morning. Like we figured, Gov’t has come in to save the markets. It is quad witching day so a lot of money needing to be moved around. They banned short selling of a bunch of financial securities which you can find here. Tons of options expiring too today so just be careful if you do decide to try getting in on the action. I know a lot of people are still pretty scared with what to do here, we think it’s a good time to start building positions on the long side. Maybe not exactly in financial names but maybe names like AAPL, PG, other stuff that aren’t directly tied into the financial sector.

Today we’re going to watch AAPL, GOOG, GS. We might not trade them because with large moves like this it’s painful to be on the wrong side. But we do like AAPL. Think it could see 144-145 today and if you swing it possibly close to 150 again. Would put a stop under 135 though in case for some reason things don’t continue to rally over the next few days.

Have a safe weekend! Here’s a vid that goes out to the Gov’t for the overnight $ proposal…enjoy!

Today I just wanted to remind everyone(including myself) not to have “tunnel vision” when trading. What I mean by that is not just looking for the fast gains and then panicking when they don’t come. As a daytrader I know that this is a big obstacle to overcome, but if it can get managed it can save a trade a lot of money in the long run.

Here’s an example… You’ve got a chart of AAPL up and it’s currently at 109.15 and it looks like it’s running full steam and should “easily” get to 110 in no time so you pick up a good sized position in it, then it goes to 109.35 and you’re feeling giddy about it, then next thing you know it starts to sell off a bit it’s back at 109.15 you say to yourself, dang, but ok it’s still at my entry, and being the good trader that I am don’t panic because you want to try to remember your original stop was at 105 with the charts really even saying it should run to 113-115. Then comes 109, then 108.70’s now it’s getting scary because you start to see that – in the P/L. then it goes all the way down to 107’s and the chart all of a sudden looks red. So you say to yourself, ok if it drops below 107 I’ll take a stop because it could keep going down, even though the original entry showed good support at 105. So it dips to 106.90’s and you exit for a loss. Then it keeps dropping 106, 105.50, you say to yourself, whew glad i got out of that one, 105.25, 105.05, 105.20, 105.50, 106, 106.75, 107.10(just above where you got out), 107.55, 108, and then the market closes. So you kind of kick yourself for taking that loss but then feel like, well at least I got out before it went to 105. Oh yeah, then the next morning it gaps up to 110.50 above what your original target was the day before.

Keep in mind this doesn’t always happen like this, and sometimes when a gain starts to show itself we get out too early instead of holding to the target price. If you’ve been trading for a while I’m sure you know what I’m talking about. If you’re new to trading don’t forget this scenario next time it happens. Our point is this, if you have a setup and a target and exit in place, don’t start to look at what the price is only doing in the few minutes or hours your watching. If you used proper money management(size and $amt) and have a chart setup in place that looks pretty good, don’t always expect it to hit that day, great if it does, but as long as it doesn’t fail your guidelines don’t forget to keep the bigger picture in mind.

Keep checking for further updates and if you have any questions or comments please let us know!

Trade Smart!

Futures opened way up this morning, and markets started to run, but the financial sector seems to continue to bring things back down. Tomorrow is going to be a crazy day and I wouldn’t be surprised to see an emergency Fed decision overnight. Everything is sliding back into the red even with the bailout news yesterday so I think the street wants to see something even bigger. As I’m typing I’m seeing MS, C and GS all hitting their new LOD’s today so we may sit the rest of the day on the sidelines unless we see something that just looks too good to pass up. Here’s something to remind you how trading has been lately…

Trade Smart!

The markets have had a craaaaazy day today. One stock we’ve spotted this afternoon is AEM. It’s had a big run already and held on during the big sell offs this afternoon. If it breaks 59.70 this afternoon we thing this one could see 62 range. Just one to watch with 30 min left in the markets for the day.

Trade smart!