AIG Gets More Funny Money As Futures Crash

March 2nd, 2009

Good Morning Traders! Well, I can’t say that we didn’t see that coming. Of course Obama and the government are going to try and throw money at this financial situation. The only problem is that absolutely none of the money is sticking to the wall – i.e. fixing the problem. After a mini blood bath in Asia, the US futures are down hard this morning signalling a very big gap in our open this morning.

 

I want to point out one very important piece of trading information. By and large, the days that signal a new intermediate trend change – or bear market rally for us – are those days that start off horrible. Even looking back to Oct 10th and Nov 20th, both days were absolutely horrible for the markets and it looked as if there was no end in sight. Still, the day after we saw huge gains and fairly short but sustained rallies. So, my point is this, when there is blood running in the street, most institutional buyers are going to be coming back into the markets. And when they do, they will come in with guns blazing and money flowing.

 

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Here is the updated S&P support and resistance levels for today. Again if we get down to the first support level, you can place a small bet for a one day reversal – then larger bets as we get to the lower levels below that. Let’s all be calm and realistic with regard to our trading today! Do not make quick decisions without thinking about them first. These are the times when the markets shake out the weak and leave to strong to reap the profits!

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