Crash Market Stocks - Financial Tips On Making Money In The Stock Market

If you just checked Wednesday's closing prices, you may have thought it was just another day of flat trading. However, despite having the Dow only close up a couple points, there was quite a bit of volatility in today's trading. New things are developing in different areas of the market, which perks my interest.

I'm sure by this point, most readers of my site consider me to be a very strong bear trader. Well, that is because most of this site has existed during some of the worst economic days we've seen in a decade. I try to stay close to fundamental economic data, as in times past, that has worked out quite well for me. When economic times are on the upside, I become very bullish. So please do not misinterpret me as a "PermaBear" trader. I want nothing more than for our economy to begin to thrive again, however I cannot cast aside the amazing amount of careless management and spending that has transpired over the past several years. It was only a matter of time until it caught up to us, and it will take some time to rebuild.

On that note, I don't see many appealing "buys" for me, as of now, that gives me complete confidence for my portfolio. However, I may consider pulling some long buys as an upcoming short hedge, as I do see a bit of short term momentum in some financials (if you could believe it!). For the past two days, government backed financial institutions have seen some strong gains, due to investors believing that these institutions are undervalued. Other banking institutions have seen much stronger rebounds than that of Citi, Freddie Mac, and Fannie Mae. As a result, we're seeing quite a bit of money being moved to these institutions. AIG jumped 10% today as they also fall into the government backed stack of institutions. I do feel that bulls are getting anxious and are finding a comfortable sweet spot, for the time being, in the financial sector, which has been a difficult sector to find strength for the time being.

My play in these companies will be very quick with strict stop losses. I do not feel that these institutions have seen the last of their problems, only that there is a quick opportunity at this point. One thing keeping my positions quick is the knowledge that the US government has close to a 30% stake in Citi and is eligible to begin selling those shares (for a profit) later this month. Right now, I think the government will make money anywhere they see fit.

On the short side, one ETF setting up for a soaring is YCS. YCS is the UltraShort Yen ETF. China is facing some serious inflationary problems, and such, should cause for a bit of downward push for the Yen. In addition to that, technically speaking, the Yen is looking very prime on the short side. I may even consider actually shorting YCL, which is the long equivalent of YCS.

It will be interesting to see how markets close out on Thursday and Friday. We are circling back towards earnings season, which can be a spark or downer for the markets. I definitely feel more certainty in the markets will be coming very shortly. Happy Trading.