JP Morgan Bails Out Bear Stearns, Market Tanks
Posted by Blain Reinkensmeyer
March 14, 2008 at 9:16 am
They say it isn’t over until the fat lady sings, and the fat lady has sung. The Nasdaq just bottomed at 2205 after trading as high as 2277 with a report that Bear Stearns ran out of liquidity “temporarily”.
This confirms speculation throughout this week that Bear Stearns was having liquidity problems, and has put a huge damper on the market. You can read more at Yahoo Finance on the matter.
I bought QID last night at $52.80 after hours thinking the CPI report was going to run negative. This morning the report comes positive and the NASDAQ is up 1.5% so I sell half my position at $51.50 in pre-hours. I just sold the remaining half at $55.44 to sneak out a profit. This is awesome 
.
Subscribe via email:
Heheh, nice job covering your loss their with some good after hours trading. What a disaster report Friday’s trading action was. So much for the common belief that we would ride an uptrend into the Fed meeting on Tuesday
Nice job on QID. I purchased some SDD right after the BSC news (albeit QID may be the better trade
, I’ll have to keep an eye on the .VXN index, and I might go in short the Nasdaq.
Admittedly I’m still somewhat bullish, but that being said, the volatality is kind of driving me crazy and making my head spin with the Ultrashorts, so I may choose less risk and go with the PSQ vs. QID.
Looking for more *fun* (depending upon how you look at it!) next week………Ray
I am catiously bullish myself. I think that the Fed meeting has a higher probability of pushing the markets higher then it does lower. Everyone is expecting 75 basis points, but there is a shot at a full 1% cut. I think this would drive the market up.
Technically speaking we remain in the same trading range from last week, and until we either close under (NASDAQ) 2200 or above 2300 I don’t see either side taking control of this market.
Right now I am trying to decide what is the best way to play this volatility on Monday. Will we pull up back towards 2250 or what? Perhaps we will gap for an open below 2200, ohh that would be fun to see. I am 100% cash right now looking for simple day trades, excited to see what goes down.
You got lucky. I got lucky with a short in WM too but it’s just luck. I think a 100 bps rate cut will hurt the dollar and push inflation. I am starting to worry about inflation more than the financials.
[...] has its hands full. Bear Stearns (BSC) reports earnings tomorrow after the bell (read up on the Bear Stearns Bailout), and the Feds are expected to drop interest rates by up to a full point on [...]