...Paulson for president..;)??

There is momentum trading,  which we've become very familiar with and have loved over the years.  This week, we've experienced a momentous trading circus and hope we don't ever see it again!.  What is it Willie said??,....."Mamas don't let your babies grow up to be Cowboys"... Change Cowboys to Traders after this roller coaster ride of emotions!.  What we saw on Thursday was just more fuel to an already exhausting week and we`re not just talking about the late day rally off the U.S mop up plan!.   The trading ranges on stocks from low to highs intraday are the wildest we can remember and not just in those being attacked (GS..MS..).   Stocks were having incredible ranges, eg., a $30 stock goes up and than falls $24, before climbing to $33 at close.  Yep, and that's a bloody coal stock with a 30% range... MS probably had a 100% price range..lol. . Midday, just before the announcement of the UK shorting plan,  it felt like doom or a final stage of capitulation as stocks we closely follow,  slowly slid lower and lower on weaker volume.     A collapse was imminent it seemed,  all it would have taken was wind of one big hedge, a fund, who'd had enough and start to liquidate.  This would set off domino's... off a cliff.    One thing only on our mind at this point was believe it or not and that was the Fed, the gov't was on high alert and would do SOMETHING!!.  Did you actually think Paulson was going to let GS be destroyed??? .   Something, he did/  they did has boxed adverse market conditions.    The world got it started,  even though the ensuing rally based on the U.K`s FSA headline seemed like just another reason to sell into as it was there and not here!.    But,  what this did was put pressure on the SEC here to do something and after the close it was pretty evident they were gonna stick a fork into short selling, in what capacity is not clear, yet, but there will be an untouchable..un-shortable group of related financial stocks for sure.   The UK plan was followed by word of a government toxic clean up job, honestly, we never read or heard of the RTS!.   This covers the bond market.   Next this morning is a treasury 50 billion guaranty program for the much scrutinized, possible run on Money Market funds for a fee covering the casual investor.  This is a huge relief!.    Incredible, historic events to take the U.S off an "orange' alert!.     As we said yesterday, the selling has not been "casual stuff", extreme forces were at work, orchestrated or not by more than one entity to destroy.   Heads will probably roll, investigations will go on for years possibly to find the root of all this.   Okay, that's the X-files version!..lol....You can say this collapse was inevitable and could have been seen coming a year or years ago, but those responsible for the havoc were not slowly building up short positions for a year.    If you even just watched and were not trading the ongoings midday, you could not help, but feel scared to death of would was on the edge!.   We are drained and many of you are as well, we're sure!.  If it wasn't for the Internet to use in the future, we'd be buying all the Financial newspapers this weekend to stash away and hold and show our 'cowboys' one day. 

Maybe the unwinding of Wall Street will be boxed in from here, but as far as trading today goes, it will still be a fast and furious playing field where you better have a big bladder or your gains may go flush before you get a chance to go flush!

We want to see " CONVICTION " and not just the enthusiasm we'll see early today.  The conviction we want is of what we discussed the other day and that is to see money come back in an orderly manner starting next week.   We want stability now, fear leaving will take sometime.  So, considering the trip of this week, we'll gladly just watch, maybe pull of a few trades quick trades and begin our much needed weekend.   We hope all survived, enjoy your weekend!.