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Two Ways To Play: Take It To the Limit

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Strengthen your portfolio in good times and bad.

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Limit Down!

Stock futures fell 6% overnight and triggered a limit down restriction, which means the Dow Jones Industrial Average and S&P 500 futures can't trade below a certain level until stateside exchanges open for regular trading. That level is 855 for the S&P and 8224 for the Dow. The news comes as stocks worldwide plunged on deepening recession concerns.

Across the pond, the UK's FTSE 100 Index sank 8% after the country's GDP shrank for the first time since 1991. Meanwhile, South Korea's KOSPI Composite Index was halted after falling 10% on reports the country's economy was showing the slowest growth in 4 years. For some perspective on so much market turmoil, read Professor Katsenelson's Confidence In the Face of the Bear.

From the Bull Pen: In a market crash, the key for bulls is to lose the least amount possible. Cash may be king, but also consider a quality play like McDonald's (MCD), which should roar to the upside once the panic settles.

From the Bear Cave: Pressing the downside in individual stocks may be tough at this point. Consider the Ultrashort S&P 500 (SDS) for a quick trade with the notion it may revisit its 52- week high ($128).


Quick Check Around the World

Asian trading closed with the Hang Seng -8.30%, Nikkei -9.60%, Sensex -10.96%, Taiwan -3.19% and Shanghai -1.91%.

Glancing towards Europe, we see the CAC -8.17%, DAX -8.29%, FTSE -7.09%

As of 8:00 a.m. EST, S&P Futures are trading -60 to 855, and Nasdaq futures are -85 to 1168.


A Look At Commodities

Crude oil is trading -4.77 to 63.10. Gold is -22 to 691. Silver is -0.630 to 8.870 and copper is -5.550 to 179.55.

The dollar index is +1.038 to 86.398.


On the Radar

Economics

10:00 Existing Home Sales (Sep)

Click here for the full trading radar.

Be safe out there. Good luck and have a great weekend.

No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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