I was stopped out of my TBT position late yesterday at $59.50 for a 2 1/4pt loss on 1 unit. The volume swelled into the TLT's which tells me the flight to safety and fear factor is running full bore. I will take my small loss and head to the shelter of the sideline.
I most likely will be stopped out of my long DIG position as everything is getting thrown overboard. Lots of small losses I can live with. Too bad the brokerages and banking institutions didn't think the same as we would all be better off for it.
Everyone keeps claiming the market is not trading on fundamentals, to which I would reply, this is a direct result of the opacity and lack of transparency in the markets. Nobody trusts nobody and it is a direct result of prior actions and behaviour. This entire situation is going to take a long time to repair, I say this as a warning to all those out there who think being a contrarian is to buy into this hole this morning.
Sitting on your hands would be a wise decision. Positions need to be put on during the calm BEFORE the storm, NOT DURING IT !
The market seems to be expecting 50 beeps as a rate cut from the FED. I would suggest you be prepared for 100 beeps.
Good speculating to you all and never forget that "an investor is a speculator who made a mistake and will not admit it".
Long 1 unit Ultrashort Lehman 20yr treasury ticker TBT @ $61.70 stop at TLT $97.66
Short 1 unit Int'l Bus Machines ticker IBM @ $129.05 stop at $126.36
Short 2 units of Apple ticker AAPL @ $178.05 stop at $177.76
Short 2 units Salesforce.com ticker CRM @ $56.05 stop at $60.62