from MyHappyTrading.com by HappyTrading! ™
I'm travelling today, so, I'll do a quick market write-up. Over the weekend LEH was unable to solidify a rescue plan for itself and was forced to file bankruptcy. Further, more concerns over AIG exerted additional pressure. Even with a buyout offer at $29/share, MER ended almost unchanged at $17.06!
AIG has been a popular short play in our Trading Room:
jackie
Hi Bagger, I went short AIG just before the close on Friday...looking to sell out of half position and possibly let the other half ride...any thoughts? Went with $7.50 puts
OptionDragon
abundance excellent i was short AIG too and covered unpublished...
james
OD,
thanks for the heads up. I sold off the AIG puts a bit ago but I feel better hearing the move from you.
HappyTrading
AIG
trade closed. +175%!
Bagger Vance
booked the AIG put trade from last week.....
700% winner!! (in at 1.42, out at 10.5).
agarmoney
Out of AIG--4 bagger on remainder--Thank$$$$!
billbigD
AIG- OD trade LOL. I was short this one in the 20's.
Great trading, everyone! 
The Dow was down 504.48 points; SPX dropped 59 points; Nasdaq lost 81.36 points:
Most sectors were down. GLD (gold) managed to gain +2.66%.
SPX
SPX lost 59 points to close at 1192.7, below the 1200 level. The daily MAs curved lower and the MACD dropped.
Nasdaq
Nasdaq fell 81.36 points to close at 2179.91, below the 2200 level. The daily MAs also curved down. Its MACD went lower as well.
VIX shot up above 30 today and closed at 31.7! Both SPX and Nasdaq closed below their July low levels (SPX 1200; Nasdaq 2200). This downward momentum will likely carry through tomorrow morning. Then, we'll have to see if the bottom fishers come in and how the market reacts to the attempts to bounce.
Good night and HappyTrading! ™
