That is why there is something called "going short" and options called "puts" to take advantage of the stocks that go down. If you are going to be in the market you have to learn these techniques as well as "buy and Hold".  And buy and hold does not mean buy and forget.

I am aware of short trading and Options. I’ve been shorting now for about a week and am recovering some losses in the last two days. I have a fictitious account with CBOE where I can take advantage of options trading, unfortunately you can’t take advantage of puts and calls with Wall Street Survivor. I am doing well with my CBOE account because of the opportunity to trade options. Thanks.

teamf05:

Dead cat bounce!

Love that analogy !!

Let me expand... as rigor mortis sets in, the bounce will become progressively less "springy". That's when the cat  finally comes to rest (stinking to high heaven)

is this a real situation

A temporary recovery from a prolonged decline or bear market, after which the market continues to fall.

Looks like another big down day ahead for Thursday. 

 There are a few unique factors taking place as we talk. 1 the upcoming elections will have a major impact on the markets. 2 The Fed is bailing every investment firm out and the taxpayer is going to be liable for years to come to the sum of trillions of dollars. 3 The war in the middle east and Afganistan and now the cold war being rekindled.

All these factors will have a major impact on the markets for the next 2 to 5 years in a very positive way, I'm going to look for companies that supply munitions and other military hardware if McCain is elected, these companies stand to reap fortunes.

If Obama is elected I'm going to look for companies that produce things like concrete and other building supplies for road and highway construction.

I'm going to buy as many shares as possible in Fannie and Freddie, it won't matter who is elected the government cannot afford neither of these companies to go under.

There is always opportunities in the stock market no matter which way the economy is headed, that's the beauty of the stock market.

Also bio tech, medical supply and pharmaceutical companies are excellent long term investments because the population is aging and more demands will be placed on these type of industries.

There's always some bull even in a bear market.

Don't let yesterday's rally in the Dow fool you. There are two crucial reasons why I'm convinced it was nothing more than a dead-cat bounce:

First, it was on extremely light volume. With most of Wall Street traders already on their Labor Day vacations, a handful of traders can easily move the market no matter how dire the underlying fundamentals are.

Second, the fundamental forces that caused this crisis — the number of mortgages going bad and the losses at banks, brokers and insurers — are piling up faster now than ever before.

Nevertheless, the Pollyannas of Wall Street — the same analysts who used to swear on a stack of Bibles that the mortgage mess would be "small" and "limited to sub-prime" — are out in force again, trying to lure you back into some of the most vulnerable stocks in the world today.

Mark my words: This credit crisis cannot end ... the bloodletting in bank stocks cannot subside ... the damage being inflicted on companies that need credit to survive cannot be healed ... and the carnage in the economy cannot be reversed ...

... until the cause — ever increasing debt defaults — is reversed.

Meanwhile, we have alarming reports that Florida's largest bank is now hanging by a thread and that news of a major bail-out could come as early as next week. Be sure to look for Sunday's Money & Markets for the full report.

 I do think that the market is going a tad bit higher

but, that gives bears a chance to short at higher levels

not a good idea to short FNM FRE F GM - the easy money has been made

Pre Market for Monday 9/15/08 This could be one of the worst days on Wall Street. Dow Jones -307.00 11144.00 9/15 1:22am

Whether the Congress passes the bailout legislation or not, the outcome will be similar: The debt crisis will continue to deepen and spread. Many more banks will fail. The economy will sink into a severe recession. And those who stubbornly hold onto vulnerable investments will suffer some of the greatest losses in modern times.

I posted this on July 25th, 2008  There is no way Ford Motor should be over $2 a share and GM over $5 to $6 a share.

Now that FORD is under $2 and GM around $5, I say it's time to buy.

The bottow is near.

I think F is going below $1.35 and GM under $2.50.  I think they're going to slide further...  Why?  Credit markets are still very tight and people are going to keep on driving what they drive now.  All new car manufacturers will continue to feel this in the days ahead.  F and GM are already in a death spiral.  They are so desparate to sell off their excess inventory that they will start taking losses on it soon if they have not already.  I don't believe either will actually go under, but I do believe they have more to lose before they start coming back.