It's gotta suck to be caught short this morning -- S&P futures are locked limit up at the CME, ES @ 1268.00 +64.75, or +5.4%. I really feel bad for all those folks I mentioned a couple of days ago who were just then initiating shorts. When I said they were sticking their faces into a buzz saw I had no idea the federal government would be the one holding the saw.
Earlier in the week I was actually considering breaking my long standing rule of not trading on expiration Fridays. Well that thought is out of my mind now. Normally I'd be licking my chops to do a gap fade this morning on one of the indices but no way I'm gonna try it today. But I still would not be surprised if this gap was closed by noon. Be careful out there!
Update @ 9:35 -- Seriously, be really careful out there today. I'm seeing all kind of strange spikes both up & down. BBY just spiked up to 80, CMCSA spiked down to 0.01.
Update at 10:00 (via Briefing.com) -- "SKFUltraShort Financials ProShares, Short Finls proshare (SEF) Rydex ETF Trust (RFN) We are seeing a number of inverse/short ETF funds being halted (SEF, RFN)"
Update at 11:49 -- Here's more on the inverse financial ETFs (from Briefing.com):
SKF UltraShort Financials ProShares are not expected to accept orders from Authorized Participants to create shares until further notice (93.00 -22.44) -Update-Due to the emergency action announced by the Securities and Exchange Commission on September 18, 2008, temporarily prohibiting short sales of shares of certain financial companies, Short Financials ProShares (SEF) and UltraShort Financials ProShares (SKF) are not expected to accept orders from Authorized Participants to create shares until further notice. Unless notified otherwise, shares will be available for redemption by Authorized Participants as normal. The shares of these ProShares are expected to trade in the financial markets today, but may trade at prices that are not in line with their intraday indicative values. (SKF, SEF and RFN are currently halted)
On Today's Calendar:
- nothing
More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic
Potential swing trades:
See one of the recent 'Chart Reading' posts for some potential swing candidates. Also be sure to check my typical swing trade entry & exit rules.
Potential day trades:
(From Briefing.com)
Gapping Down
In reaction to disappointing earnings/guidance: PALM -9.4%, CTAS -1.8% (light volume)... Select gold names pulling back with gold futures declining the most since 1980: LIHR -7.5%, AU -6.1%, DROOY -5.7%, HMY -3.4%... Other news: OTTR -4.8% (prices a 4.5 mln share common stock offering at $30/share)... Analyst comments: GSIC -2.0% (downgraded to Hold at Jefferies), CTAS -1.8% (downgraded to Sell at Citigroup).
Gapping Up
In reaction to strong earnings/guidance: ORCL +11.5% (also upgraded to Buy at Piper)... Select financial related stocks sharply higher (XLF +19.5%) boosted by temporary ban on short selling and Treasury announcement of $50 bln plan that guarantees money market funds: BKUNA +88.2%, AIG +48.7%, DSL +47.7%, GNW +47.5%, NCC +45.5%, WM +41.8% (Citi weighs a WaMu takeover bid - WSJ), PMI +38.1%, CORS +37.7%, WB +35.7%, MS +34.8% (Morgan Stanley in talks with CIC -- FT), GS +30.5%, GFG +28.8%, TGIC +26.7%, SCA +24.4%, FED +24.1%, C +23.0% (weighs a WaMu takeover bid - WSJ), MER +22.4%, ZION +19.4%, HBAN +19.0%, LM +18.9%, ETFC +17.9%, BAC +17.7%, FHN +17.4%, IRE +15.5% (surges on report Banco Santander may make bid - Bloomberg.com), UBS +15.4%, KEY +15.2% (upgraded to Sector Perform at RBC), UCBH +14.5%, RBS +14.3%, MBI +14.3%, ABK +13.9%, BBT +12.7%, FITB +12.4%, SFI +11.0%, AEG +10.9% (releases details of AIG exposure), CMA +9.3%, JPM +9.2%, HBC +2.0% (says it abandoned acquisition of Korea Exchange Bank - Bloomberg.com)... Other news: VSE +57.5% (retains Morgan Stanley to evaluate strategic alternatives), NVDA +4.3% (announces workforce reduction; to eliminate 360 positions).. Analyst comments: CEG +3.3% (upgraded to Hold at Jefferies).
Disclaimer & How I use this list
"Into a buzzsaw" says it prefectly.