As you may know, I bought CIT yesterday, and minutes later, the stock was halted pending news. Currently, the government is refusing the bailout CIT and the stock is under the very serious threat of bankruptcy. This is a 9.5% allocation.
This was a high-risk speculative play, and I lost. CIT will likely be the biggest mistake I made since I started trading in late 2002 (I never got caught in a bk co). No doubt, I am fully prepared to take a 100% loss on this position. The stock won't open at $0.00, but let's say that it does. Not only will it wipe out my entire week's gains (so far), I'll be in the red at approximately -2.2% for the week. This will also bring my YTD gains to about +198%, below the 200%+ level that I've been holding on to for a while. Who cares?
That's nothing. In fact, it doesn't bother me at all. I'll be green by the end of the week, and I know it and you know it. Everyone makes mistakes, and not a single person here is perfect. I will be the first person here to say it. The important thing is to just let it go and move on and bite the bullet like a man (or a woman, if in fact, you are a woman). And remember, taking losses is part of the business, unless your Lenny "Roofless" Dykstra.
Now, if you bought a huge position in CIT, then you are screwed. Take it as an expensive lesson in money management. Everyone is responsible for their own actions.
Moving on to the SPX, yesterday's move broke away from the descending channel. I stated in my previous post that the opening gap was enough for an intra-day breakaway gap. What's important now is IF and HOW we consolidate from such a massive move.
Below are the 2-month/60-min, 3-month/60-min, and 7-month/daily charts of the SPX with noted support and resistance levels.
Below are the SPRD Select Sector ETFs (XLV, XLB, XLP, XLI, XLU, XLY, XLI, XLF, XLE, XLK):
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