Selling into this weak opening is a mistake

Global stock markets plummeted Monday as concerns about the widening fallout from the credit crisis fueled fears about a world-wide recession. This AM the world econpmic meltdown takes center stage. The US market are opening dowm 200 points
We are headed for a sharply lower open. The fear of contagion is spreading on a daily basis, and that's why we are lower," said Peter Cardillo, chief market economist at Avalon Partners in New York.
He added that investors doubted that there would be immediate benefits from the $700 billion U.S. financial sector rescue plan passed by Congress Friday as questions about how it will be.
The operatve word here is that he doubted that there would be any immediate benefits to the rescue plan.Well I am betting that there will be.
Gold this AM is up $40 this AM to 873 still 125 off of its high in March. This move in Gold is a dead cat bouce. It is my belief that Gold goes to $450 when the dust settles.
The U.S. dollar jumped to a 13-month high against the euro Monday, while the yen rallied across the board as fears over bank problems in Europe deepened and investors cut risk exposure.
The ICE Futures U.S. dollar index, which tracks the greenback against a basket of six major currencies, rose 0.5 percent to 81.305. It earlier rose to 81.436, a 13-month high. The dollar is making a 13 month high sports fans not widely reported in the press. Let see Gold relative to the dollar should be falling. The buyers here are in for a surprise.
The VIX index ..see yesterday's blog on the VIX is at 51.71 if this was a speeometer the needle would be burried. Time to buy not sell time to sell Gold and not buy.

With the dollar making a 13 month high I am adding to my position on the DZZ at 29.81this AM will add more if this continues.

7:47 DJIA 9813 -506 VIX now at 56 up down volume to up volume 30 to 1 approaching crash levels.

The financials XLF showing strength verses the economic growth stocks that group has already been nailed. The commodity group is heading for the basement in a hurry,. Gold stocks getting hit today also Gold will be the next commodity to get nailed.

I love the financials here particularly MS at this price of 21 but it is too close to my last buy to add on here same with the XLF at 17.79 again too close to add on from my last buy.

Investing is an exercise in disipline not an attempt to pick tops or bottoms the more disiplined you are in these times the better your results. I trust this approach. What I am seeing today is panic and not displine you can use this to your advantage if you remain calm.

Federal Natl Mtg after a selloff to .38 and a rally to 2.75 is pulling back to near $1. Now at $1.08 will start my 1/4 buy at .90 if it gets there.

10:08 AM DJIA now down 521 I think they will call this Black Monday am waiting before I add on VIX at 53.51 record high hit today.

10:49 AM These technical conditions existed in 1984, 1987, 1990, 1994, 1998 and 200. In each case within one year you had a signifigant rally. The hedge funds are being forced to the sidelines. If you buy today you will be happy, when I don't know remember that is uncertain. We trust the law of uncertainty. What you don't do is load up to heavy at any one price or buy options or use margin. This kind of situation has always produced a major tradeable rally unless its game over and as I said last week I'll bet against that everytime.
I don't think we reverse today their game plan has been to do that after the market closes. We will probably sell off into the close. Think timewise the low is close. Will buy SSO on close again now crusing by at 39 bought at 47 and 43 this would be my third buy.
These technical conditions existed in 1984, 1987, 1990, 1994, 1998 and 2002. In each case within one year you had a signifigant rally. The hedge funds are being forced to the sidelines. If you buy today you will be happy when I don't know remember that is uncertain. We trust the law of uncertainty. What you don't do is load up to heavy at any one price or buy options or use margin. This kind of situation has always produced a major tradeable rally unless its game over and as I said last week I'll bet against that everytime.
11:58 DJIA 9619 -709 Is the world comming to an end Nah, I like the financials and would short Gold now. CNBC has breaking news DJIA down more than 700 ...That's news?
Oh well just part of the game. Will buy the close see ya then.
12:49 DJIA 9928 Rallying now -396 The shorts are saying OH no Mr. Bill. Geez maybe some of that 700 billion ...remember that.. is finding its way into the markets.
NEW YORK (Reuters) - Oil dropped more than 6 percent to below $88 a barrel on Monday as a global market rout churned concerns that faltering fuel demand could slow further.
A reminder that things change in a hurry remember July 11th whenIsreal was going to attack Iran. Oil was 148 and there wasn't enough oil in the world ...read this:

U.S. stocks tumbled 6 percent to the lowest level in nearly five years as part of an international sell-off on fears the global economy was heading into recession.
U.S. crude settled down $6.07 at $87.81 a barrel after hitting an eight-month low of $87.56. London Brent crude fell $6.57 to settle at $83.68 a barrel.
Analysts are watching oil demand from China -- which helped fuel a 6-year rally in commodities -- for signs the crisis is hitting consumption.
The world's No. 2 consumer will not import gasoline for the second straight month and instead export the fuel due to heavy domestic stockpiles and a dip in demand.
Wow that was quick!!! Expect it to go to 45 - 50 a barrell and 2 buck gas.

Close...We close down a measley 365 points after being down 750 well OK is was down but hey we are still alive and most of my positions are hanging in there. It's great to be alive. By the way athe experts and analysts are very conservative now.
ALLLLLRIGHTY THEN> Lets buy here and wait until they get back in OK
Mikey.....The beat goes on...