S&P 500 day trading course Dec 2 live room

Descending triangle with support at 822.50.

Crash level will be 654.75

Still no capitulation, just an exhaustive market. These rallies are all sold off.

Will automakers get stimulus package with workers at $70 an hour? Having to guarantee bonuses?

if we work our way up to the 850 mark and can close the gap at 894.50 there is a chance for an inverted H&S.

Doubt it though as Market Makers have crushed every rally.

S&P 500 day trading and Economy - labor-unemployment-

The economy declined in the third quarter the most since 2001. New home sales expectedly rose 2.7 percent in September(fast inovators getting in before the final drop) , before credit markets froze, up from a drop of 12.6 percent in August, according to Commerce Department reports.

It is estimated that a Labor Department report on Nov. 7 will show payrolls shrank by 200,000 workers last month. The unemployment rate may jump to its highest level in more than five years.

And in case you are wondering why mortgage yields are higher again, here is a little background provided by our President(can you believe it) that will help you answer any questions you may have. Here are the main drivers:


1) International selling. A variety of factors - including some recent confusion over the semantics of whether the GSEs are "explicitly" or "effectively" guaranteed by the government - have created a new wave of MBS selling around the world. The general "flight-to-quality" has become so intense that investors are now carefully differentiating between degrees of government support and the fact that the GSE backing is considered "effective" but not "explicit" is actually very meaningful to investors in agency corporate debt as well as agency MBS.

2) Unintended consequences of the FDIC guaranteeing more forms of senior bank debt. As more and more investment alternatives become explicitly guaranteed by the government, the new abundance of risk-free investment choices has caused FNMA/FHLMC corporate debt costs to increase. As the GSEs' cost to finance MBS increases, holding MBS in their portfolios becomes less economical and the market expects them to be less involved in purchasing MBS.

3) Similar to #2 above, as sovereign debt issuers around the world issue debt at increasing yields, these investment alternatives also siphon-off potential demand for FNMA/FHLMC corporate debt and force the agency's funding costs higher making additional portfolio growth uneconomical to the GSEs.

4) De-leveraging continues across the investment community and is made worse at the moment since some dealers have year-ends in Nov and are not anxious to dramatically increase positions at this time.

5) Some investors are reallocating money back to stocks and out of MBS. This back-and-forth will obviously continue as the economic story plays-out.

S&P 500 Fearful - greedy the market and the investors

Warren Buffett's Advice: Be fearful when others are greedy, and be greedy when others are fearful.

This kind of makes me laugh because the Market Makers are setting this scenario for fast implementers in the market place.

Yes, most people are fearful, yes, there is opportunity.

Have you been convinced by the Pundits it is a bottom? Ready to just jump in so you won't miss it this time?

Well stay tuned, because you and everyone else are ready to jump in when their looks to be some sunshine. Now if this is the situation, when investors, who are the late implementers in the market place are sitting on the side lines with money in hand, who do you think will sell into this next demand surge?

The Market Makers and the Money Makers (TM) because they know that the pundits have set this as a bottom and there is more to go (to the downside).

Yes, if you are an intraday trader there is alot of money to be made but what if you are a hold and hope investor(HH)? Normally, you will wait til it seems safe, then you will stick your toe in, see it go up a little and as you think it is alright, the selling will start. You will probably be on a little vacation and not have your stops in because you haven't been taught this risk type management. The stock will surge and while you are on your trip you will think that this time you got it right. A 10-20% gain in a few weeks. You now decide to forget the news, enjoy your trip because you have earned it. Maybe it is time to reward your self, get a massage, go to the expensive restaurant.

Here is the Investors first mistake. They haven't bagged the profits. They think because they have seen the value go up that it is theirs. So, it is ok to charge a little more to the room or get another round of golf in, and maybe buy that gold anklet for your wife.

HH investor gets home, safe in the knowledge that he made that extra 20% in the market to turn on the TV. He notices that the Dow is now 400 points lower than when he bought the stock. A little worried he turns on his PC and goes on his online account to see that his stock is now 20% down from his purchase price. What to do?

One of the codes we have as Money Maker is that we enter the market with a stop and a target. We know when to get in and when to get out.

If you can apply these simple guidelines to your trading, investing and speculations you will always be able to mange your risk, bag your profits and have actually earned you vacation purchases.........

Just keep it in mind.....the profit is yours only after you have taken it.