Just when you think stocks might have some chance at bouncing back and hitting there bottoms more and more bad news is right around the corner the the US financial system as seen today with the Dow dropping over 500 points for the session. I can honestly say this is the first time i’ve witnessed a 500 point decline in the dow as a trader and wouldn’t mind it being the last. Luckily my holdings were light which i sold out of this morning with just 5% positions in AMFI and NPD which i sold for minimal losses. Currently i’m 100% cash in the chaotic market. I don’t see the need to risk my money by trying to force any trades at this point. AMFI looked like a perfect trade on Friday , yet with news of Lehman flipped the switch on the trade with a decent size gap down on the open Monday. Holding over night on these stocks has become a risk one must be willing to take when swing trading this market. Seems your safest bet is to day trade the intraday volatility of these stocks which can turn out huge profits if your on the right sides of your trades.

Funny i’ve never seen this a “Main headline” stay up on yahoo for so long without any update, i wouldn’t be surprised if the gov is forcing yahoo to keep this there or paying them to try and boost our confidence in the Us Financial system haha.

On a positive note Oil is continuing to decline so that will help us out at the gas pump at least because gas prices are rediculous. Even though im pretty much used to gas humbling around $4/gallon now it would be nice to go back to my early highschool days when i would pay .99/cents/gallon to fill up my 89 camaro back in 2000 Oil dropped to $92/barrel in midafternoon trading in signapore.

Looking into Tuesdays session DOW futures are trading flat right now showing some signs up stabilization after being down over 100 points Monday night. Lets see how this monday massacre smells in Tuesdays Session