by Larry Levin
Have you heard the term "Write Down" lately? It means: Reducing the book value of an asset because it is overvalued compared to the market value.
It is pretty much taking the market down to the lowest levels we've seen in quite some time. Merrill Lynch last week said they were writing down as much as $10 Billion (with a "B"!) and they aren't the only one's.
And make no mistake there is more to come with the banks and brokerages reporting bad news over the coming weeks. So hold on tight and look closely for those good opportunities on the short side.
One other note: Last week in the S&P Futures pit I noticed something strange. On the days when the market went higher (Monday and part of Friday) most of the action was big institutions selling into the rally. That is different because usually on up days, institutions are buying and not selling. I don't know if they are trying to get in front of all this bad news, but I thought I'd mention it to you, because it was a strange situation.
Real Time Trading Signals*for
Trade Date: 11/9/07
E-Mini S&P Trades*
(before fees and commissions):
8:40 FT Sell 57.50 - +.75 & -1.75
9:13 FT BUy 62.25 = +.75, +5.00, +3.50
9:38 VA Buy 65.25 = -1.75 all
10:07 ID VA BUy +.75 & b/e
10:45 VA Buy 64.50 = +.75, -1.00, -1.00
10:52 VA Buy 64.50 = +.75, +.50, b/e
1:03 OTF Sell 67.50 = -1.75 all
2:32 OTF Buy 71.00 = -1.75 all
E-Mini Russell Trades*
(before fees and commissions):
1) Buy @ 9:14am at 769.9 = +1.0 & +3.0
2) Buy @ 9:41am at 774.1 = -1.0 & -1.0
3) Sell @ 10:00am at 772.2 = +.5 & +4.3
4) Sell @ 10:06am at 769.7 = +.5 & +3.5
5) Sell @ 10:31am at 771.4 = b/e & b/e
6) Buy @ 11:16am at 770.4 = +1.4 (1 lot)
7) Buy @ 11:32am at 772.2 = +.5 & +3.2
8) Buy @ 11:59am at 772.9 = +.7 (1 lot)
9) Sell @ 12:20pm at 773.1 = +.5 & b/e
10) Sell @ 12:41pm at 773.2 = +.6 (1 lot)
11) Sell @ 1:04pm at 775.3 = -1.2 & -1.2
12) Buy @ 2:15pm at 778.6 = +.5 & +2.0
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