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We Have To Hold Today’s SP Low, XLF Should Be Biggest Gainer If It Holds

May 27, 2008 10:50 PM

I believe we HAVE to hold today’s low going forward or the market will get into a panic mode and we will fall all the way to 1350. Look to be long off today’s low. If we clear it I smell huge trouble. Financials reversed today and if we are going up, the best percentage gain should be long that sector. Therefore, look to be long XLF but know your exit point. I still believe there are tons of bad debts not disclosed and the market is wrong longer term - but this trading not worrying about “long term prospects”.

Today’s action was VERY important for the market. We are very, very close to melting down. That is why I believe we have to hold today’s low. I was reading a trading site i have subscribed to for years a bit ago, and his commentary ws the same - we are close to a meltdown if we do not reverse. So we are on the same page here. Again, for a trade, look to be long financials. Buy XLF, buy Goldman, buy whatever. BUT if we clear lows…run for cover as this thing is bye, bye Miss America Pie…not buy, buy…

Written by Tom@StockBlade.com · Filed Under GS, XLF 

Comments

14 Responses to “We Have To Hold Today’s SP Low, XLF Should Be Biggest Gainer If It Holds”

  1. Tom@StockBlade.com on May 28th, 2008 10:01 am

    I would rather have a better low to trade off at the open…no trade long here, IMO…yet…we need to make a reversal …we have a reversal at the opening high…

  2. Tom@StockBlade.com on May 28th, 2008 10:12 am

    Still no low that I like….we would have to get this back over 1387…we have short term reversals here…im not convinced

  3. Tom@StockBlade.com on May 28th, 2008 10:15 am

    To make a strong reversal, ideally we will make a reversal off a new low after 10:30…

  4. Tom@StockBlade.com on May 28th, 2008 10:54 am

    It is bouncing off a key sma line….bounced exactly off it…I normally do not like these type of lows…

  5. Tom@StockBlade.com on May 28th, 2008 10:55 am

    It would be a far easier trade if we made a new low…i just do not like this…if we run near the high and do not put in a better reversal, the high is likely to be rejected here….I dont like it

  6. Tom@StockBlade.com on May 28th, 2008 10:59 am

    Be very careful on any run near the high of 1390 here….there should be shorts there unless we can clear it…

  7. Tom@StockBlade.com on May 28th, 2008 11:02 am

    The BIG picture is we should eventually move higher….whether it will be today I dont know…

  8. Tom@StockBlade.com on May 28th, 2008 11:05 am

    There is a 3 point drop already off the recent high…If we had cleared 1386.50 first and then sold down, we would see some pressure here….I want a reversal to be long…then i am all in…

  9. Tom@StockBlade.com on May 28th, 2008 11:09 am

    Dow Chemical CEO had some very negative things to say about the economy…. Thanks for that newsflash….The economy is going to get far worse…so? lol

  10. Tom@StockBlade.com on May 28th, 2008 11:13 am

    Down to 1382.75…I still think we need a reversal AFTER 11:30 if we want this to have power here…

  11. Tom@StockBlade.com on May 28th, 2008 11:25 am

    Ok, we keep marching lower…as i thought was likely as I did NOT like the low… Watch out for a reversal after 11:30….I want it low…reverse with some force…otherwise we have already seen todays high..

  12. Tom@StockBlade.com on May 28th, 2008 11:31 am

    Still dont like the low….If we pop lower…i think a reversal is likely…if we cant get that, this is going to be difficult to trade…

  13. Tom@StockBlade.com on May 28th, 2008 11:32 am

    The 1381 area is right on a key SMA that it has bounced off twice already….

  14. Tom@StockBlade.com on May 28th, 2008 11:35 am

    Ugh….another short term reversal off 1381….I want a NEW low ideally…

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