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

Its looking grim for LEH holders as the stock has slid 85% in early trading on the Frankfurt exchange as well as most US bank shares eating it between 7.5% and 17%. It sucks for those who were trying to bet on these companies hoping for a bottom and losing mucho dinero! For example this guy is hating life today lol and just threw away $15k. I’m sure there are plenty more of him out there that are losing way more than $15k throughout this financial market mess. I was curious to see how the market was going to react to the Bank of America and Merril lynch buyout news and MER is actually up 30% as they seem to be in the clear with big poppa BAC to have there back now, yet Bank of America shares are sliding over 12% on the FSE currently. Just a glimpse of what we should expect to see Monday in the US markets. Ok i’m off to bed now. C ya’ll in the Morning .

Man oh man the good news in the financial industry just keeps getting better and better. With FNM and FRE eating turds for breakfast it looks like Lehman Brothers is going to join them Monday morning for a nice feast at the best turd griddle place on Wall Street. Barclays decided to pull out of the bid for Lehmans investment management division leaving LEH caught in a well with no rescue ropes to pull them out as they stated they intend to file for Bankruptcy. Still now, they are looking for buyers but the line up of canidates has grown thin so its likely that Lehman will succumb to financial devil’s call.

Bank of America saved the day for Merril Lynch for the price tag of $50b which is going to make them as a team a huge rival to the big timer Citi bank.

Monday….. Oh Monday… Its gonna suck for anyone who was long in LEH from Friday as you can imagine how this stock is going to react in the morning especially pre-market we’re going to see a huge gap down. Currently Dow futures are trading down 270 which have actually rebounded somewhat off of there lows but more than likely we probably won’t be seeing much green in the financial industry tomorrow on our watch lists. Oh how i love trading this market Cya guys Monday Morning !