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

Every day that goes by we are seeing America slowly realizing just how bad it may get the next year. Today, only 1 stock was positive in the Dow and it was GM, solely based on the expectation of a government bailout. And I still believe the worse is yet to come.

Today, Secretary Paulson had a press conference to tell the country they are "revamping" the way they're going to spend the $700 billion bailout funds. Instead of focusing on troubled mortgage assets, they're going to focus on consumer credit debt. So now it sounds like they want to bailout people's credit card debt so that credit card companies can start lending to the same people again. What a great plan. This will somehow "unfreeze" the lending markets again. It sounds like full circle to me.

Well, the market didn't respond to well to Paulson's address. Following his remarks, we saw the Dow plunge another 100 points (300 more by the end of the day). The point is, even with hedge funds liquidating, most traders are realizing that we probably have some bad days ahead. These current market trends and volatility we are seeing are frightening close to the trends we saw in the market leading up to Black Tuesday. It's days like these, I'm glad I'm short.

FXP fought a hard fought battle today. It opened up in the red as a response to China's relatively strong performance last night. However, today's raging storm of bad news eventually brought it back up, closing a bit above $82. This is very encouraging for me, considering China had a strong day yesterday. China showed slow retail sales growth for the last month, which should shake things up. Most likely, Asia will take a bath this evening in response to our own bath. I'm looking for FXP to take a strong pop tomorrow.

On a different note, I actually bought long today. That's right, long. GDX has been so beaten up, I picked up some January expiring options at $22. So this gives me plenty of time for Gold to get a bit of a bounce from its recent slaughtering. I felt the need to hold something long as a hedge. If we go red again tomorrow, I am looking to buy back into the .QAADB Apple option (being below $10). Apple in the $90 range is a pretty good short term buy for me. I am enjoying the gains from SRS, SDS, and QID as well. Those should continue to run strong as we test a new bottom in the coming weeks/months.

There is still debate whether or not GM will be bailed out. My guess is they will. I don't think the government wants to send this market down the 6000 range (although I'm not sure if I agree with the bailout). Oil is another one to watch. It continues to get slaughtered as demand keeps going down. However, OPEC is considering another "emergency meeting" to cut supply again. This usually does well to give a nice 10-15% bump in DIG. I would wait to see how this week plays out before buying it. But if DIG goes below $25, it's a buy in my book.

Tomorrow, should be another good day for me, unless we wake up with a surprise from the government. There is still a chance of some manipulation from hedge funds, Friday being the deadline. Keep in mind, we still have the doozy of an announcement Friday, when they announce US retail sales. Once again, keep your eye on China tonight, that usually gives a good preview of where to expect FXP for tomorrow. Happy Trading everyone, and we'll see you tomorrow. Feel free to drop some comments, I'd like to hear other's thoughts.

After 3 days straight of a strong rally, Asian markets run was put to a stop on Friday. Even though Japan is still expected to cut their rate, many gathered the profits they could find in case their is not a cut made, which would send Asia into a big down spin. So I don't know if FXP will get much lower to make a second buy in. Who knows though, US is a market of it's own so it could be up, but usually the Asian market is a good factor in driving FXP.

I would guess we will see the same "profit taking" trend tomorrow in our own markets unless some significant announcement is made. We have had three pretty strong days, which is more we can ask for in this market. We may begin the day up, but I think we are going to see a pretty strong sell off before the close, which could push the market down 3-4%. Be careful this next week, during "Rave Week", and get into FXP while it is still below $100. If it's below $90 tomorrow, even better! See you tomorrow.

And we were so close. From now on, you may just want to save yourself the time and only turn on your computer to check the status of the stock market between 12:50 and 1:00pm (PST), because lately the last ten minutes we have seen this market move anywhere from 3-5%. We enjoyed a majority of the day in the green and saw, for a brief time, increases in gold, oil, Rim, and Apple. However, that was quickly wiped out the last five minutes of the market. Don't worry, all is not lost.

On the bright side, we saw FXP hit $184, wow. So for all who heeded the call at my $92 buy in, has now doubled their investment on that stock in 1 week. No need to thank me, I'm riding the wave with you. Although it looks as if this stock will never be halted, I found it time to unload a majority of my position. I mean how greedy can we get. We may see it creep close to $200, depending on the market the next few days, but I don't want to roll the dice.

One dilemma this puts me in, is now I am not in a short position to cover my longs. Sure, I still have a minor stake FXP, but nothing that will hedge my longs. The good news is, all of my long purchases were option contracts, so there is a maximum to my downside risk.

So why go long in this market? Do I think that we have reached the bottom? NO! But I believe there is enough news in the next two weeks to encourage a healthy 1000+ rally and it could happen on any day. What are these reasons?

• Fed is meeting to discuss and is expected to make another cut to the rate. Historically, this has been a great way to stimulate the market. Depending, on how big the cut is, the market could really take off. It could take off tomorrow just in anticipation for it. If they cut it 50+ basis points, watch out.
• Elections. Historically, the market always slows prior to an election, but than usually gets a healthy bump afterwords. As it looks as though Mr. Obama will be elected, that can easily stimulate a run.
• Hedge fund redemptions expire Mid November. It is in their best interest to have the market as high as possible for these redemptions, so look for maybe a manipulated run in that regard.

I hope some people listened and got into Apple. Apple stock is trading over 14% in after-hours. I don't know what it will open at tomorrow, but I'm sure it will be green.

SAN FRANCISCO (MarketWatch) -- Your next-door neighbor probably can predict what's going to happen with the economy about as well as Apple Inc. can.
That was the wisdom offered up by Apple's AAPL chief executive, Steve Jobs, who made a surprise guest appearance on the company's earnings conference call Tuesday, a move aimed at quelling investors' jitters about the economic downturn.
Jobs was ostensibly on the call to tout the stunning results of the iPhone, which outsold rival Research In Motion Ltd. RIMM in the quarter.
Jobs touted the fact that the iPhone was a big part of Apple's fiscal fourth quarter, with 39% of total revenue coming from the device. This explosion was due to the fact that the faster 3G iPhone was launched in July. The company said the 3G iPhone outpaced RIM in unit sales, shipping 6.9 million units in the quarter vs. RIM's 6.1 million units.
In the background, though, was the fact that sales of the Macintosh computers, formerly Apple's crown jewel, appear to be going in the wrong direction. In the quarter, Apple saw unit sales of the Macintosh continue to grow, albeit at a slower pace. Macs slowed to unit growth of 21%, down from 41% in the third quarter, 51% in the second quarter and 44% in the first quarter.
Apple executives noted, though, that Mac sales were still outpacing the rest of the PC market. Analysts asked if Apple planned to lower prices or offer lower-end products.
"We don't know how to make a $500 computer that is not a piece of junk and our DNA will not let us ship that," Jobs said.
Wall Street seemed to like Jobs' appearance on the call, driving Apple's stock in after-hours trading. Only time will tell how well Jobs know his customers. He predicted that in the current belt-tightening, Apple customers are more likely to "delay rather than switch."
--Therese Poletti