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Financial news I consider important, with my opinion, which is worth as much as you paid for it.

Tuesday, July 14, 2009

First hand, house gets pocket aces

On Monday the market rallied against the head and shoulders pattern. As I stated Monday, the very large ominous pattern must be weighing on the big money. All those who tried to jump ahead, just got rolled.

Tuesday morning I expect a power pump with Gold Man Sachs. Like I said yesterday, this week will NOT be a fun trade or to watch your positions get pushed around. I will not play, as I stated Monday, but I will modify that statement. There is a decent chance Tuesday will be the high and we roll down. But I won't play this game as I said Monday, I don't like to bet against the house, especially when it has it's own private money printing press.

If on Friday we manage to rally higher than the close Monday, I will buy puts. Specifically buy next month options for the move down. I would expect some disaster news this weekend so the markets can gap down. It is a cheating way for the market makers to take from everyone. The market closes Friday, options expire or are exercised. People will wake up Monday with options settled, and the market makers, if "by chance and lucky enough" to have the market open lower Monday, the market makers will be able to settle the trades cheaper than they where Friday....basically pocket the money.

I am NOT stating that this will occur!

What I am saying is, I will break my rule I stated Monday and trade this week IF Friday EOD the market hasn't retreated from the close of Monday. The reasoning is, I think the chances are higher for a open down big next Monday.

Today, chalk up to the big money fighting the pressures of the market.

And just watch, Goldman Sachs earnings may be good, but their executives have sold 700 Million in stock. Once again, I would rather bet with the executives private investment changes than with the rhetoric they give on their own company. When it comes down to it, trust what the executives do with their personal investing.

But there is blood in the water, when CNBC is actually reporting something negative on Goldman Sachs....two videos
























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