Update on Oct 15

Two things worth noting today.

1. SEC amended the rule of nake shorting. My understanding is if anyone is nake shorting for too long and not delivering is consider as illegal. I hope I interpret that correctly......

2. 3 major banks in US formed a rescue fund to help restoring global credit market. It sounds like they form a fund to purchase bad debt they made.....


With Citigroup reported $3b of loss in mortgage-back, major indices dropped since the opening and didn't come back. The question many people are probably thinking, is this a start or just 1-day?

I checked the SPY, QQQQ, DIA and IWM, the 4 ETFs representing the 4 indices, they all tested the 20-day EMA, so far they all hold above, but it worths to keep an eye on it specially when big firms report bad earnings. We'll see.

My 4 stocks of course did not do very well, with EFUT again testing the 200-day EMA (the highest one). With TASR and CEDC went down again, but not with significant volume. Especially TASR is still above all 4 EMAs I use.

One good thing is LOCM held pretty well, it indeed went up in the afternoon. In the mass selloff day and it can hold on to its gain it's not easy.