Depressing title, huh? Even so, it speaks volumes of the pain and trouble that investors and traders across the board are dealing with. In fact, regardless of the direction that you are trading in, it is still difficult to be on the right side of the trades.

Today’s culprit: Lehman Brothers. They continue to play the role of the market’s red-headed step child, being trounced on by hedge funds, rumors, and naked short-sales.

The best advice for trading in this market, is to be nimble and to trade small, only adding to a position as it increases in value. If you can do that, you can avoid much of this market’s downside. The lows from July will be a huge testing ground for the bulls; if they can hold these levels, the market could see a descent bounce, if not, we’ll likely see another spree of selling.

Here’s the Nasdaq and S&P charts…

Despair

NASDAQ

 

S&P

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