I shorted the DOW at 8400, now I'm in serious pain

December 10th, 2008
Wall Street rallies after movement on auto bailout
Posted: 08:41 PM ET
From Alexandra Twin
CNNMoney.com

NEW YORK (CNNMoney.com) — Stocks rallied Wednesday, recovering from a mid-afternoon retreat, as investors welcomed reports that Congress and the White House have struck a deal to provide a $14 billion bailout to the struggling auto industry.

The Dow Jones Industrial Average added 0.8 percent. The Standard & Poor’s 500 index gained 1.2 percent and the Nasdaq composite also gained 1.2 percent.

Stocks rallied through the early afternoon in response to the auto bailout news, lost steam after the release of the November Treasury and then recharged the advance near the close.

Yeah wait for it to fall go ahead!

Gloom and doomers will kill ya everytime.

reply to post by downtown436

You may get your chance tomorrow morning. Futures are falling through the floor with the death of the Auto Bailout Bill.

As of 11pm EST, the Dow future is at 8200.

Things are starting to look a little better now, I am pretty sure the Dow is headed south of 7000, I will ride my investment until the dow reaches 6800. DXD should be at about 100$ a share at that point.

Looks like its getting to be time to get into gold with the dollar weakness.

reply to post by downtown436

Well, be careful. Bush can always order Paulson to take the $14 billion from TARP. Maybe you should put in a stop order on the way up, after a reasonable drop.

There is just no good news in the economy, and the dow will continue down. People are just out of money. After x-mas we will see the fall of a great multitude of retail establishments. Jobs will disappear. The stock markets will crash. Then the dollar will crash.

reply to post by downtown436


You may have made a mistake. I think that the actual real-life market still has to catch up with all the panic selling of the last couple of months. As bad as things are, investers are still resistant to the idea that the Dow will get under 7000. I think it would take the total failure of the US car industry to get under 6000. But then...that may now happen....

[edit on 12-12-2008 by Silenceisall]

As I expected, Paulson did say he would use the TARP money this morning to prevent imminent failure. Now the real fun begins.

there may not be that many sellers left........at least that is what mr. cramer is saying lately ............but i think alot of funds may also be buying there stock as a last ditch effort for the end of year valuations, and some more selling may resume after the new year.

Alot of the rest of the stock owners may be buy and hold types so they may just sit tight and provide a floor for the market.......although i would think this floor is in the mid 6000's. but what do i know ......

anyone buying Treasury debt (of any maturity) with leverage (for high reward) over the past year made a KILLING