Market Meltdown - Sep 2008

The Dow has plunged more than 800 points today, on the news that the House has rejected the $700B bailout bill.

Luckily I've been out of the market, having been stopped out, otherwise this would not have been pretty for my current "pick up uptrending stocks" strategy!

Take a look at the image below!


Baron Phillipe Rothschild once exclaimed that the time to buy was "when there is blood in the streets". I wonder if this is what he was talking about?

Market Collapse - Financial Sector in Free Fall

It's been an amazing week and half. The financial markets have been in a meltdown, with the implosion at venerable Lehman Brothers and meltdown at AIG, Merrill Lynch and Goldman Sachs, everything has been in freefall since early last week. There was a brief rally at the end of the week with the announcement of a Government bailout plan to the tune of $700 Billion, but it's back down this week.

The freefall downward spiral wiped out small levels of gains from the past two weeks, but my strong money management philosophy helped to limit the damage to very minor levels; I got stopped out of everything with minimal losses.

Staying out of the Market for now; will get back in again when I have free time.

Watch for mid-Sep

Watch carefully: FRED (resistance at 16, 20), HA (crossed resistance at 9.3)

Previous tracking, currently slightly lower: MITI, VRX, NWY, AMGN

New tracking: HOMB, AROW

Updates for mid-September

RKT:
No upcoming company events. News: No major news.
Weekly picture looks great, rises on higher volume, MACD-leading, 50-day EMA leads 200-day EMA.
Daily chart also good. Candlesticks - some downward pressure on Friday, recovered.
5-day chart: consolidation at 44.
Bought: 42.5; Resistance: 44.5; Support: 42.3; Weekly Last: 44.0
Risk: $175

HGR:
No upcoming company events. News: Buys three pt centers with cash on hand.
Bought: 18.23; Resistance: 19.8; Support: 18.5; Weekly Last: 19.21

GIS:
==> Earnings Announcement: Sep 17
Bought: 68.42; Resistance: 69.2; Support: 68.2; Weekly Last: 69.1

CRMT:
No upcoming company events. No News.
Bought: 22.65; Resistance: 23.2; Support: 21.4; Weekly Last: 21.84

Rock-Tenn Co. Ready to Break out?

HGR - if it goes above 19.2, will break out on the upside; start tiny above 18.2, then start pyramiding in as it goes higher. Thinly traded (350K).

AMGN - positive run may be over; may break out higher if it gets over 66.2. More likely to break out lower.

MITI - run up may be over; break out over 7.7 . Thinly traded (275K).

WMB - no longer taking off, support around 28; alert above 32.4, otherwise it's a falling knife

LSR - too thinly traded (43K).

VRX - interesting above 21.

NWY - interesting above 12.4 .

New additions of 52-week highs: GIS, RKT, CRMT

GIS - poised to break out over 68; Earnings announcement Sep 17 . Bollinger Bands tightening. Went higher at End of the week. Clear uptrend over 6 months, consistently higher than EMA. Pick up over 68.4 .

RKT - breaking out on the upside. Thinly-traded (560K). Pick up over 40.5 .

CRMT - interesting over 22.2. Thinly-traded (292K).

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Chart Links:
52-week highs at BarChart.
New 52-week highs at MSN Money.
MSN Money Power Searches.