We’re looking at another one of those negative-bias openings. So far futures are showing declines well over 1% – Dow: -189, Nasdaq: -33, and the S&P: -22.
This may come as a surprise to some based on how many in the Fed and Congress had been touting this bailout plan, but just because it will get passed likely sometime today, doesn’t mean the markets are going to reverse course and head back to their October highs.
Instead, it will probably give these banks a soft landing on their bad mortgage debt, and probably keep the markets from dramatically spiraling out of control. But let’s think back on the actions of the Fed so far this year; has anything that they have done to date, improved market conditions? No, in fact we have see the market go lower each time they’ve intervened. So do I think everything is just fine and dandy now with this bailout plan in place? Nope.
But nonetheless, there are still ways to make money in this market, and even though it is by far the toughest market of our lifetime, there’s a chart below on Finish LIne Inc. that we will be shorting, assuming it hits our price parameters. If you want our parameters that we are using to trade this position and more, then Click Here to subscribe.
Here’s the chart on FINL…
