Okay, maybe not a good word to shoot around today as many have taken major losses in this scheme that has been apparently running for years now. Many of the worlds wealthiest had large sums of money which is literally become worth zero over night.

To some smaller investors, this is bitter sweet after taking mammoth hits on stocks like Freddie Mac (FRE) and Fannie Mae (FNM), Washington Mutual (WAMU), etc. But the reality is that everyone is going to suffer from this major fraud.

European markets have taken large hits as investors and large banks begin to report how much they have been scammed for and as this information begins to trickle down the media stream, watch for possibly lower market prices as many scramble to sell other stakes to cover deep losses.

Here is a video I found that explains the whole situation within a couple of minutes. I think this is better than me typing out what is going on:

Now overseas markets are currently lower on the Asian side while the US futures are pointing to a slightly lower to flat open at present. It is early to tell what direction the markets will go towards especially after Monday’s movement. I didn’t get into any stocks Monday. However I am back looking for some deals today.

My main play will by (GM), I will be watching the short side as well as the long side and just follow the pattern and see which direction to run in. Money can be made on this stock and with the news that the US Government might pressure car companies to go into bankruptcy is interesting to watch. This might play out to a lower open but a rally might ensue as people hold on to the hope of a bailout.

So the Washington Post (LINKY) just mentioned what I have been talking about since last week, the idea of a drastic cut in oil production by OPEC to prop up prices and lower inventory. Look for crude prices to pop and a possible rally in Energy stocks is what I’m looking at. The companies like Exxon (XOM) just move up a bit and also alternative energy sources might see a small run up like (SOL) or (SOLF) although in my opinion, oil is way too low for any major run on a solar stock.

Well that is the game plan for Tuesday on the market end. If anything changes, I will let everyone know. I will also be occupied with my USMLE studying so that is intense on its own and have to connect with a client in California in regards to my business. It’s a busy time with everyone gearing into holiday mode while money needs to be made.

Happy Investing!

Aman, MBA

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