We Ain't There Yet

(h/t bloggerdotcom)

Also, check out this "Heat Map" that Todd found... pretty cool.

Short Order Ban Lifted For Thursday Trade

I guess since they signed the "bailout," they're going to lift the ban on shorting financial stocks.

Here's the terse statement from the SEC on the matter.

Genius, "I Gotcha Back"

"Trader D" selection.

The RO Report, "Orderly Panic" Edition

I have to say that for all the pictures you'll see tomorrow of aggrieved traders, and even with the $VIX spiking to its highest level since its inception, it didn't feel too panicky out there.

Also, the fact that the market rallied 400 points on even the hint of a rumor about a special G8 meeting, is laughable. In fact, the market was so orderly today on the downside, that I'm starting to get the awful feeling that we'll need to get below 8500 on the Dow before this is all over. That's just my feeling... no lines or anything to give me that number... it's just where I think shit would be really, really scary.

The best case scenario, from a trading standpoint, didn't happen today. Had we pinned ourselves to the lows at the close, down over 1000 points or something, and set ourselves up for a little more of a wash tomorrow morning, I feel we could have made a bottom. It would have been perfect. Europe and all the overseas markets would get crushed again, we would have gapped down tomorrow, sold the first hour and then bounced. Just after we started to bounce, the FED could come in and cut 50bp and we would have had a 600 point rally.

The end of day rally today muddied that scenario a bit and I'm not sure what to think now going forward. I think we have, yet again, forestalled the inevitable.

It wasn't a classic day for the RO. There was good money made, but also some heavy losses. At no time today was it "easy" to make money and every trader... even Trader D, visited the dark side today at some point. In fact, Trader D was down close to $30,000 at one point.

Out of 26 traders today, 19 were gross positive, or 73%. That's good, but given all the movement today, I'm surprised it wasn't better. Still, the "bosses" reclaim the top position... the RO was nicely positive today overall. 12 traders finished up over $1,000 gross. I was #10 of 26.

Here are today's Bosses:

1. Trader D, $107,836 on 738k shares traded.
2. Trader C, $30,088 on 579k shares traded.
3. Trader Z, $14,564 on 377k shares traded.
4. Trader E, $8,974 on 147k shares traded.
5. Trader L, $5,587 on 114k shares traded.

And the Manservants:

1. Trader F, -$27,081 on 185k shares traded.
2. Trader K, -$23,121 on 362k shares traded.
3. Trader A, -$11,797 on 556k shares traded.
4. Trader N, -$4,656 on 46,000 shares traded.
5. Trader V, -$1,617 on 59,500 shares traded.

Get good sleep tonight. But before you close your eyes on the day, give us your thoughts on what will happen tomorrow over in the comment section.

NOTE: Volume on the NYSE was under 2 billion shares today. That seems light given the action. I don't think we've seen the bottom.

The Cramer Bottom

Jim Cramer is telling investors to get out of the stock market.

My guess, the stock market will be now bottoming sooner, rather than later.

Trading ETFs

I've been trading more ETFs lately. Accordingly, I wanted to share a couple of important ETF resources with you, respected reader.

Here's a useful link to a PDF file with all the ETFs listed. You can print it out, memorize it, and then start making jokes to your friends about the hot new "Wound Care" ETF, HRW.

Or, you can click the Yahoo Finance ETF Center link over on my blogroll. That's useful too. I sort by volume. I mean, there are loads of ETFs, but only a small group that you'd want to actively daytrade.

Definitely don't trade that HRW...

Terrorists Don't Love Free Speech Either, Mrs. Palin

With Palin basically calling Obama a terrorist this weekend for being a member of a charity board with an old member of the Weather Underground, I thought I should point that the McCain campaign is against free speech.

Why not? One exaggeration deserves another, no?

From Yahoo:

Reporters weren't permitted to wander around inside Coachman Park in Clearwater to talk to Palin's audience, the St. Petersburg Times reported.

When reporters tried to leave the designated press area and head to where the crowd was seated, an escort would dart out, confront him or her and say, "Can I help you?" and turn the person around, Times staff writer Eileen Schulte wrote on the paper's Web site. When one reporter asked an escort, who would not give her name, why the press wasn't allowed to mingle, she said that in the past, negative things had been written, Schulte reported.

What Kimbo Slice Has In Common With Our Financial System

I dunno, nothing I guess. However, there may be something to it afterall.

I'll let you decide.

Art Cashin On CNBC, October 6, 2008

Note: Art was wearing a vintage Dow 10,000 hat... below is a paraphrase of his brief comments this morning.

Worried about what's going on in Europe, and it may spiral out of control.

Some concern in the market, did we wait too long?

Maybe we get a good capitulation sell off today, then a little continuation tomorrow morning and then a sharp reversal. That would be one right out of the trader's handbook.

Doom Descends On Wall Street

Looking at close to a 300 point gap down in the Dow pre-open. World indexes are all down 5% or more. Russia closed after their index dropped 17%.

No worries though... they'll cut 50bp today to squeeze the hell out of any remaining shorts.

Then we'll drop another few hundo tomorrow.

Nothing is "oversold."

Pailin Debates Biden On SNL

This was dead on.



Check out the Sarah Palin debate flow chart. Hilarious.

And here's a link to the real debate... (h/t "Trader K")

Finance Is Boring, Admit It

Yesterday, at a party, I was cornered by a man with fancy pants who found out that I was a trader. He started to talk to me about all kinds of "economic theory" and "exotic financial instruments." He was in his mid 40s and retired.

Now, I have no financial background and I'm just not interested in financial talk, unless it's from a human perspective. Like, I enjoy talking about how people react to crazy news events, depressions, etc.

People who jump out of windows and horde food supplies and gold... that makes for good conversation. Talking about how one financial instrument influences another is not.

So anyway, after listening to this guy for probably 15 minutes and retaining absolutely nothing, minus some interesting tidbit about the government banning the purchase of gold in 1931 or something, he started asking me questions about stuff.

Without being a dick about it, I just said that I knew nothing about finance, and didn't care to clutter my head that sort of knowledge.

"In fact," I said, "if I knew too much, it could hinder my ability to trade, because I might come up with bad reasons to stay in trades that were going against me," and I cited the famous quote from John Maynard Keynes about "the market staying irrational longer than you can stay solvent."

He liked that. Happily, we moved on to discuss something more interesting, like "how to manipulate people." Still, in the back of my head, I felt a little guilty, being a writer for a blog that's somewhat about finance, while knowing nothing about it.

So, in order to feel better about this situation, I spent a few minutes this morning reading an article about Fannie Mae. It's a good one, and I suggest you check it out, so that you too can bore people about your "financial knowledge" at dinner parties.

Artifacts, "Wrong Side Of The Tracks"

"Trader B's" musical selection.



Note... I have entered a new label for "boss music."

The RO Report, "The Close Sucked" Edition

In the last few weeks, probably 80% of the RO's profits have been made in the last hour and a half each day. The last couple of days has seen a straight reversal of that trend.

I would have been a boss today, had I not traded the close... ah well, next week I will be trading a little more cautiously. The bailout news is behind us. Now it seems, we're waiting on a possible surprise rate cut.

"Trader B" schooled the RO today. From now on, whenever the top boss just completely outperforms the rest of the group, I will ask them to pick the evening musical selection.

Anyway, it's Friday, let's get right to it. Out of 21 traders today, 12 were gross positive, or 57%. I think the RO is turning into a pretty good indicator for judging the trading environment. When 75% of more of the traders are gross positive, shit is on. I was #10 of 21. Positive, but frustrated by a huge giveback. The office was up today, so the Bosses are back on top.

Have a good weekend.

Here are today's Bosses:

1. Trader B, $48,545 on 853k shares traded.
2. Trader D, $18,006 on 256k shares traded.
3. Trader K, $9,324 on 163k shares traded.
4. Trader O, $1,525 on 17,800 shares traded.
5. Trader L, $651 on 94,200 shares traded.

And the Manservants:

1. Trader C, -$30,051 on 658k shares traded.
2. Trader F, -$6,336 on 170k shares traded.
3. Trader R, -$4,226 on 78,944 shares traded.
4. Trader E, -$3,563 on 81,400 shares traded.
5. Trader Z, -$2,758 on 156k shares traded.

Art Cashin

(paraphrasing what he just said on CNBC)

What's keeping us from totally rolling is the idea that Bernanke said they'd use "every tool in the toolbox."

We come in Monday and if the commercial paper market hasn't loosened, the idea is that the Fed may come in Monday and cut 50bp.

How I Feel About The Bailout

(h/t Wall Street Fighter)

NOTE: Okay, this post hasn't gotten any discussion. I thought for sure it would. That's a cat. On the cat, is taped a piece of bacon. That's fucking hilarious. What's wrong with you people?

Bailout Bill Passed

No thanks to the Republicans, who voted against it 91-108. Well, now the Dems "own" this bill. Should it work, they'll get all the credit. Should it fail, they'll get all the blame.

So much for "changing the partisan tone" in Washington, eh?

Larry Kudlow And Dennis Kneale Should Be Unemployed

Why are they still on CNBC? I mean, for the last year, all I remember is Dennis Kneale telling people that we were "talking ourselves" into a recession and Larry Kudlow telling everyone that the "Goldilocks economy" was alive and well.

People are so pissed off at Wall Street, how about getting pissed off at the right wing propagandaists on CNBC who have been pushing the Bush Administration's economic talking points during this crisis?

Just wondering.

(Meanwhile, anyone know how I could get their pictures side by side?)

The Daily Show - Clusterfuck To The Poor House

I'm Voting Republican...

Now that Palin won the debate, (told you so) I figured I spring this little vid on you (h/t Dinosister). Sure it's a little over the top, but it's funny.



Meanwhile, in another of example of "DT Wins Again!" since I've been intentionally spelling "Palin" "Pailin" in my post titles, many unsuspecting Republicans who typed "Pailin Wins Debate" were treated to my post with the hot blond chick and the media criticism.

Yesssss! Love those phonetic spellers. In fact, if you watched the debate, I'm sure we can deduce that Palin spells "nuclear" "new-cue-lar."

I found her manner of speech cute, more like, adorable.