Tomorrow is our Super Bowl. LEH may file for bankputcy. MER may be bought. Oil is below $100. AIG is seeking capital. We not gonna get all those funny commercials, chips, pizza and cheap beer. But we are gonna get some serious price action tomorrow. Can we just go to the office and start trading now? OK so what do we do?
Take a look at the financials: BAC, JPM, MS, GS and find their levels. Now take those levels and throw them out the window. Take all that you have learned about Technical Analysis and forget it. Tomorrow we will be trading. Tomorrow is a day for traders. Order flow will dominate not charts. None of the charts that you are going to read have considered something like what we are going to get tomorrow.
Find some oil and gas stocks. Oil below $100 is what energy traders have been waiting for. Will large positions get stopped out below $100?
On the Open NYSE will probably experience serious failures. The volume may be too much for NYSE to handle. Be careful. You might want to wait till trading dies down on the Open if you are not an experienced trader. Heck you might want to wait till things slow down if you are an experienced trader. There will be money to be printed all day long.
Choose the stocks that you are going to trade carefully. Find the stocks that are best for you and stick with them. Tomorrow is a day to focus on less and not more. Watch the stocks that you are comfortable with. They are going to move significantly intraday. You are not going to need more than a few stocks. Do not spread yourself too thin. Focus. Consolidate your watch list.
Prepare mentally. Visualize yourself having your best day ever. Visualize the trades that you will make tomorrow.
This is going to be one of those days that we talk about in 20 years. You will be a part of a historic trading day. Relax. Let the order flow talk to you. Follow the momentum. One Good Trade and then One Good Trade.
Good luck!