A Look At The DOW

Take a look at this 20 year chart of the DOW:

Now take a look at this (all data), looks pretty extended:

When everything goes as planned, just take a look at my post from last night. I outlined how I was buying [[SRS]] and getting short Goldman Sachs Group, Inc. [[GS]] . Played it perfect.

I also sold many of my longs in strength to free up some cash, it was a gift for me to get to sell into strength. I seemed to be perfectly in tune with the market with the exception of holding my refiner play Tesoro Corporation [[TSO]] . I couldn’t be happier with how I played this disaster of a day.

It was also great to see Fly’s prediction come true, and to have him back in full form. This site is truly unique and gets better by the day. We have a great community, and it’s great to bank a little coin on a sub 500 day.

Note: Hats off to Danny for nearly predicting the close of the DOW.

For Goldman Sachs Group, Inc. [[GS]]

Support is at the March low @ 139.74, a break below that may be fatal.

Note: Go ask Fly what he thinks about GS.

I’m perfectly content with having a large cash position. No one know what will happen this week. We have a fed meeting tomorrow, a few big names reporting, possible AIG merger, and let’s not forget option expiration this week.

In short, expect some market trickery, and then expect more.

Keep your position sizes small, and always look for your exit before entering your trade.

Note: I nibbled at AIG around $4/share, am I nuts?

As of right now American International Group, Inc. [[AIG]] is down damn near 100%, this cannot be ignored. AIG is the new leader, what it does the market will do– keep it on your screen.

It was a gift this morning to get out of a few longs where I did. Now I am siting on a hefty cash position along with some [[SRS]] .

Normally I am that guy that buy the dips, however this time I have no intentions.

Trade well, and follow AIG.

I know I said I was not selling at the open, but I feel we got a gift only being down 100. I sold a bunch of positions. Scanning for trades now.

More update coming…