MARKET COMMENTARY

Despite the approval of the bailout plan by the House, the U.S. market tumbled immediately after the votes were out. A strong gain of 250 points at around noon had turned the day of trading to a loss of 157 points. This, indeed, is a very bearish sign. If you are a trader who had waited for the last hour of trading should have taken some bearish positions or got yourselves some put options, never mind what the implications are for the economy.

With the Dow made an all-time low since the bear run started this year, there will be more downs and downs in the weeks to come. The weekly chart showed that the Dow had suffered the biggest one-week lost in the history. The daily chart suggested that the Dow can still have room to move south without being oversold. For this reason, I think the longer term players can hold their positions until the RSI 30% is reached.

Of all the trades, I am particularly interested in Gold (GLD), Citibank (C), and United States Oil (USO). All three displayed strong bearish opportunities this week and may be next. The Crude Oil is especially prone to bear hit. This is the best futures to go bearish for.

DJIA Daily Chart

The Russell has been bearish for many days. To catch the bearish move on this index, you may want to wait for rebound.

RUT Daily Chart

The Nasdaq was just as bearish as the Russell. Again, a rebound would be a better way to catch the bear of this index; this includes selling Bear Calls.

NDX Daily Chart

STOCKS TO WATCH:

USO, C, GLD - bearish breakout

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