Bail out week

1.Should not DT on Mon and Fri. Should know they are extremely violate days.

2.Thursday and Friday, typical sell on news, but I tend to wishful think. Idiot.

3.Tuesday, Sep 30. Index Option expired day and Quarterly window dress day. No surprise to see some recover after a 778 sold off day on Monday.

4. Thursday, clearly the trend is broken from the open!

5.Friday, at 8:30 non-farm payrolls were reported -159K vs. -71K, but the unemployment rate stayed at 6.1%. The index futures shrugged off the news and continued to move higher on expectations of passing the "bailout plan" in the House.(This reminds us how news is dangerous for trading,only chart matter.)

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This week has to go down in history as the week that was, or at least one of them. After the three page Paulson plan was rejected, Congress worked diligently for a week to put together a plan that was acceptable. The market waited patiently and closed last friday at SPX 1213. Over the weekend both party leaders suggested they had put together a "bailout plan" that would be voted on in the House on monday. The market opened unchanged, but then immediately started to sell off as it sensed the vote would fail. It did! And the SPX dropped 107 points (8.8%) in one day. Congress went back to work. By close of business wednesday the market had rallied back to 1161, up 5% from mondays close. That night the Senate passed a reworked bill, and the market sold off anyway on thursday. Then friday the market rallied back over 1150 awaiting the vote in the House. When the House also passed the bill, which was later signed by the President, and is now law. The market sold off and made new lows for the downtrend, SPX 1098. For the week the SPX/DOW dropped 8.4%, and the NDX/NAZ dropped 11.6%. The biggest weekly drop since 911. (from ELLIOTT WAVE)