What a day! Unfortunately or not, I was busy with meetings at work and was not able to participate in much of the action at all. The nasdaq 100 names looked like they were taking some serious damage - including GOOG which remains quite beaten down even on the +300 point dow close. For a while there it seemed like the market was about to completely go under.
I glanced at newswires and noticed that mortgage rates have finally come down to record levels due to the rate cut, and I'm quite surprised and optimistic. I'm not sure if that was the actual reason for our 600 point rally off the lows, but my personal opinion is that if mortgage rates are finally down (5.31%?), it will help a lot of things. If homeowners can finally refinance their homes and stop the foreclosure rate, the credit quality of assets held by banks can finally stabilize. That in turn will seriously help alleviate the liquidity crisis we've been experiencing. Does that mean I'm completely bullish on the equity market? Not sure yet, but this was a pretty convincing day that we may have put in a near term bottom. In addition, the market seemed to recover without any real other news - correct me if i'm wrong.
I was able to pull off a nice trade on BIDU and FMCN into the close, which I've liquidated by now. 100% cash and ready for tomorrow. The market will always be here.
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Hey buddy,
I accidently came across your blog. Lots of good stuff here and I'm looking forward visiting. I've been trading for a little over 5 years. I mainly trade futures, but not a big trader after all. Maybe some day.
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