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

This is why I prefaced this week with "Rave Week." News today consisted of:

• Slightly higher than expected job loss reports
• GM and Ford earnings horrible
• Retail sales lowest in 35 years
• Dollar weakening in strength
• Oil went up

And...We close up 248 points; got to love market movers. Today was an early witness of the short squeeze being caused for the upcoming redemptions next Friday for hedge funds. Like I said yesterday, expect this rally to trinkle into next week, however, I do not know how much higher we can go even with market manipulation. The point is, we will continue to see the market not making much sense until next Friday. Sure, most of my gain from the past two days of FXP have was wiped out today, but like I said, I am not expecting this round to last a week. Although, I would have like to see it hit $120 today, there is still no stopping this ETF from hitting the $150 range by January (maybe even multiple times).

So what do I do? I load up more. I am going to wait and see how we react Monday, but if we see FXP go lower, I would love top pick up some more shares. Also, my .QAADB Apple option is getting pretty close to buy price again. I usually wait for that to get down to $10, where then I load up and sell at $20.

We could very well see this market shoot up close to 10000 next week. This does not mean FXP will go to $40. FXP was especially rocked today, because of the strong performance of the China Market last night. SKF and SRS were not hurt nearly as much by the gains today. I don't see FXP going much lower than the high 60's (if that) and if I can get my hands on some shares at that price, I will be quite pleased.

For those that just got into FXP, be patient. It pays off. Today may have caused some to make a mess in their pants, but don't panic. Just as hard as it gets hit it goes up. We are still experiencing some market uncertainty with the elections and these redemptions. Like I've said before, give it a month or two on this go around. We were fortunate enough last time to have 100% gains in a week, but that was a gift. Financials got hit pretty hard today and with talks of a second bailout being discussed, UYG is a good stock to look at for next week. I still like GDX, even though it was down today. STP was up over 20% today. Solar should remain very volatile until Obama is in office. This stock is still very undervalued.

So not the kind of day I was hoping to end on for the week, but what could I expect from Rave Week? Next week should be interesting and I would love to see the S&P get a strong bump so I could load up on SDS. If we can see these shorts get slammed next week, that will tee us up perfectly for loading up for the end of year. There is no stopping the storm ahead. Have a great weekend and I will see you on Monday. Depending on the weekend, I may give a Sunday evening update. Happy Trading.

If your long in the market, you're probably hitting your head against a wall wondering why you didn't sell two days ago. It's amazing how one extra day can kill you in this market. And tomorrow looks like it's not going to get better. Earlier today, we saw the market react to negative earnings reported by a variety of big retailers, which I expected. Wal-Mart was the one of the few that actually beat market expectations (because now even the rich people are shopping there). In addition to that, there was a vast array of rate cuts all throughout Europe, many of which were disappointing, which ending up crushing commodity markets like Gold and Oil. Our trading volume has increased since earlier in the week, which makes me think even more people are selling than before.

If you are long, don't jump off a bridge quite yet. With a strong need of a short squeeze before next Friday (hedge fund redemptions), I believe there is a very good chance of a pretty strong rally early next week. So even though tomorrow may be worse than today, stick in there until next week. Our inverse ETFs performed great, as always. We saw FXP close above the $100 threshold already. For those that followed me in getting into it has seen a nice 15-20% gain in a few days, and we still got a ways to go.

Unemployment numbers are set to be announced tomorrow and it looks bad. Analysts are expecting to see a loss in 210,000 non-farm payroll jobs for the month of October. They are also expecting to see a rise in the unemployment rate from 6.1% to 6.3%, just this month. If the numbers announced are worse than these (which I believe they will be), good night. We could be in for another 500-600 point loss again. This shouldn't be bad news for those of us who loaded up on FXP and SRS, but not too good for those going long.

For tomorrow, stay with your shorts. We should see strong gains from all of them. SDS, the Ultra short ETF for the S&P, has been performing great. That is one to be following as well in this mess. Now depending on where we look to close tomorrow, believe it or not, but I am going to look to get into some long option contracts. Like I said, I believe we're in for a pretty healthy rally before next Friday, and I wouldn't mind riding part of that train back up again. I will be looking to get back into some DIG January contracts, probably around a $37 strike price, as well as some GDX and UYG options for April. I will only be doing these if we see a pretty down day tomorrow. The options give me the flexibility to win back any losses I may get next week a lot quicker, because of the leverage. But that sword cuts both ways, so watch out.

Now, if by some miracle we report better employment reports than expected, this could propel this rally to begin a day early, sending the market way up. So keep that in mind. We could see this short squeeze rally take us near 10000 before next Friday. I don't plan on selling any of my FXP (unless it hits $120 tomorrow, which then I will take some profits out), because after next week, FXP should be trading in the $120-130 range. The most important times of the day are at 6:30 am (PST) and about 1:45 pm. Like I have said before, the market has been know to swing 400 points in the last ten minutes of trading, so try to catch those times. Tomorrow should be a good day for FXP, SRS and SDS, which makes it a good day for me. There's good money to be made out there and I hope your tapping into it. Happy Trading and we'll see you tomorrow.

It seems as if reality struck a day sooner than expected. After seeing global markets reacting the way they did last night, I was surprised to see us down this morning. I thought we would maybe get a little rally today, followed by this massacre tomorrow or Friday. This just goes to show how grim the forecast looks for the next year. I am not blaming today's mishap on Obama, however, I knew yesterday's gains were a bit overzealous for the current situation we are in.

GDX actually weathered pretty well today and I was able to liquidate all my shares of AIG this morning before it got too nasty. Although I was hoping for a near $3 sale, I was able to sell at $2.30, yielding a 43% return in 3 days. Not too bad. So now, I am completely out of my long positions and will stay that way for the next month or two. Not too say I don't think we will have anymore green days. I just think if we do, they will be in result to a manipulated short squeeze or a reaction to some new stimulous plan that gets everyone all riled up again. Either way, they will be very, very short term.

I said not to lose faith in FXP, today we saw it up over 15%. SKF and SRS also saw huge gains. My large position in FXP ended giving me a pretty good day today, overall. And I believe it's going to be tough to slow this downward train.

Tomorrow, we have retail news. If it's anything close to last months, it will be bad. Consumer sediment has almost been completely wiped out and with the recent earnings reports from several retailers, I'm guessing this to be a bad month. Look for SRS to take a pretty healthy jump tomorrow, as most of their shorts are with real estate REITS. This stock is still a strong buy! I believe by January, we will see it back at $200+. With this news, we should probably see another down day tomorrow and even Friday. Our short term rally could be wiped out as soon as Monday.

It is still possible that today was a lot of profit taking. Solar stocks were crushed today, which was surprising, because with the election of Obama, (who is a strong supporter of alternative energy) you would expect a bounce. However, yesterday there was such strong gains that almost was overzealous. But don't be overly shocked if we somehow make it into the green tomorrow. People still are on this buzz of change with Obama.

Stay with your short positions, they will be what makes you a lot of money the next two months. If you haven't bought FXP, it is still a good buy. It was a lot better at $75, but under $100, it is still a great buy.

If you feel uncomfortable only in a short position, look to buy April contracts of GDX ($26) or GLD ($82), or look to get into some solar. STP is a great undervalued solar company. A few months ago, Morningstar had a 5 star rating with a target price of $92. Today, it closed at $16.35. I believe this stocks should be at $30-$40 by February. With the help of Obama's alternative energy crush, we should see strength in the big solar players. This is if you HAVE to go long. I would prefer to just hold short for now. This credit crisis we are in will most likely not BEGIN to get better by early 2010. So enjoy these inverse ETF's, because there are not a lot of guarantees in life! Have a good night and Happy Trading. We'll see you tomorrow.

As we progress further into "Rave Week", we continue to find surprises. Although, we did anticipate a rally this week, with the fact that historically stocks have rallied following elections. One thing is for sure, Wall Street does not like uncertainty, which is why in most cases there is a slowing prior before elections. However, with certainty comes a rally. In this case, with the polls strongly favoring Obama to win today, it seems as though Wall Street has already made up its mind, finishing the day over 9600. It seems as if they feel the uncertainty is over. Remember, I cautioned for the possibility of a rally towards 10000, since the 9200 threshold was reached. But tomorrow will be tricky. As when news is expected to be announced, like the Fed Rate cut, or high earnings, there is usually a bigger run before hand factoring in the expectations. I believe we have experienced that "anticipation" of the election today. However, when the excitement settles and America "sobers" up, we will still be in the same financial crisis we started months ago, and this time Head Deep. Look for a new bottom to be established in December or January.

Tomorrow, I believe we have a good chance to keep this rally going. Foreign markets should respond well this evening to the election and strong performance in Wall street, which should carry over into tomorrow. However, I think this rally could be put to a sharp halt on Thursday and/or Friday. Like I said yesterday, employment news is announced on Friday, and that can't be good.

The only thing keeping the market above 9000 the next couple of weeks will be the short squeeze we are experiencing, because of Redemptions due in Mid November. Until then, we may see this awkward stimulated market, with the help of some market manipulation. Just remember, we aren't even labeled a "recession" yet. We have a ways to go.

So what to do. As expected, we saw big moves in GDX and AIG. I think I will look to sell AIG as it approaches $3. GDX looks like a good sell for me at $25. Both have been great this past week and still should move. GDX has moved 30% in the past few days where AIG has almost doubled.

LOAD UP ON FXP, Wow! I was extactic to see it go below $80 today. I picked up another good load of shares today at $74. People, I know it's hard to see the sharp decline in buy into it, but this is a steal. The harsh times that lie ahead for the end of the year will directly show in the value of FXP. I believe we will hit the $200 price by January.

For Tomorrow, expect another rally, maybe not as strong as today. This may be the last day to get FXP at this strong, discounted price. If you still are in GDX or AIG, you may want to consider selling of some if not all your shares tomorrow, before the market gets struck. SKF and SRS are getting very close to purchasing price, I'm just waiting a bit longer (although that is a gamble, because this could be the lowest it goes). Be patient, like I said in prior posts, in this round of FXP, we aren't going to see a double in a week like we did last time. We may have to wait a month or two this time. So be patient, Happy Trading and we'll look to see what this market does tomorrow. Oh and if McCain somehow wins tomorrow, who knows what the market will do, all bets are off. See you Tomorrow.

As anticipated, this week (at least the beginning of it) does not look to be a good week to anticipate market movement. Today, we saw the Dow Jones trade at low 179.25 M volume, the average being 335.66 M. Clearly, we see that Wall Street has taken the back seat to the upcoming election which takes place tomorrow. It was a pretty slow day all around for the market and not much movement was found in most sectors. Circuit City announced today that they will be closing 155 stores and cutting around 7,300 jobs, as we expected. This is just a tease until the big closure comes after the holidays.

On the bright side, China had a relatively strong opening of the week, bringing FXP down to $85 during points of the day. I was able to bulk up my position more at this discounted price. If I can continue to pick up shares at this discount, I am all about, because a storm is coming, and it's just a matter of time. It will be interesting to see how Asian markets respond this evening to the relatively weak opening of Wall Street today. I believe many countries predicted a nice rally this week.

Like I said last week, I am not planning on being too active this week. With the volume so low, it makes it a real volatile market vulnerable to several conditions. A couple positions that have been catching my eye are GOLD (GDX) and AIG. Everyone keeps saying we are in a "deflationary" market, hence the continual rate cut. Many predict us to eventually have The Fed rate at 0. At this point, inflation is inevitable. It doesn't matter how quick The Fed responds, we will experience inflation. At that point, gold becomes a commodity of high demand. I think GDX is a Strong Buy under $20. You can't go wrong.

Also, AIG is picked up strength the past few days. With the FDIC controlling it currently, I think its a pretty solid buy in the short term. Mind you, there will continue to be negative news with credit markets for the next year, so I look at it for the very short term.

As for now, I am mostly playing FXP. If SRS and SKF can get below $100, I feel very confident about getting back in those as well. This Friday, November 7, Employment Report comes out and you can count on this number being disappointing. I would not be surprised to see the Unemployment rate over 7% and the new jobs down huge from the previous quarter. This is bound to take a negative punch on the market. However, we still could be feeling the short squeeze up until Nov 14th, so be aware we may not see too much movement until Mid November. But be advised, this credit crisis is not going anywhere for a while. Get out and vote tomorrow and keep tabs on FXP. I'm guessing we should get a little bounce from it tomorrow. Happy Trading and we'll see you tomorrow.