Thursday, November 16th, 2017

Market bail out failed

House voted 226- 207 the bail out did not pass. My screen went absolutely crimson and DOW dropped 600 points NASDAQ 126 points. If there is something called Market Crash this is what it will look like. Bail out is dead. May be not. This is the breaking news. We want to stay out of it and not try to profit as volatility is very high and whipsaws will hand down losses.


Monday opens with a bang. Its gaps down 300 points and its ugly out there. Many stocks gapped down 5-15 points at the open and start trading in straight lines. Not much a day trader can do in that.  The Technical picture on major stocks is so destructive that it may take few months to get them back to where they could be attractive to investors. Its a dismal picture out there. To name a few AAPL, GOOG, POT, FSLR, BIDU  all have double digit losses. AAPL broke its January support and BIDU crashed to 241 support levels. FSLR is going to keep crashing till it reaches 160 support levels. NDX  is down 95 points and has broken a major support area and who knows where that will end.

Congress over the weekend did not come out with the good news of the 700 billion bailout. Its a staggering sum of money greater than the defense budget of US armed forces! Its a highly unpopular bailout among the constituents of Congress and with the US public and there have been demonstrations on Wall street on Friday showing public resentment. Main street thinks crooks got away and they should not foot the bill for it, at least that is what the sentiment is out there.

Hopefully we shall see  a vote on this market bail out by Wednesday but that still is going to be a nail biter since there is a  disagreement about it in the rank and file. Its very possible this  bailout may not pass the halls of Capitol Hills- and for that reason that is the anger market is showing today. Lets not forget, Market is owned by the same people whom we are bailing out.

I have repeatedly held the line that markets are very treacherous to trade and today’s market action shows that, and if you had placed an IRON CONDOR or a bull spread last week you would be sweating today. Patience is the key. When things become clearer and we see a safe direction may initiate new trades. Meanwhile stay tuned….right here..you are making money-.



Comments

3 Responses to “Market bail out failed”
  1. We must interpret a bad temper as a sign of inferiority.

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