Well Traders, today was BRUTAL. Well, it was brutal for other traders, but not really for me. I had some very solid risk management in place so even though I was taken out of about 70% of my positions, I only realized losses of 0.43%. Not bad at all. My other positions haven't been taken out yet, and in the case of JOYG, the next few days may have presented me the GOLDEN opportunity I have been waiting for.
Speaking of which, I am going to hang out on the sidelines for a day or five and see how this shakes out. If this is a healthy correction, then there will be a TON of buying opportunities for me on some of my previous stocks I follow. I am now the Lion lying in wait for the Gazelle to cross my path. When the time is right, I'll pounce.
If this is the beginning of a Bear Trend, then there are some things to look at...QID for one, which is the Bear ETF for the NASDAQ. Also, DOG, the Bear ETF on the Dow (as in DOGs of the DOW), may be worth a look.
If we do head to a Bear Trend I will be hanging out religiously on Über-Bear Tim Knight's blog, Trader Tim. If you want some awesome Ursine suggestions, that is the place to be! I made some very good $$$ last summer following him and considering he started Prophet.net and just published a book on Technical Analysis, the guy has some props to back up what he writes.
Finally, there was a MAJOR bump in the FEAR factor in the markets as evidenced by the $VIX and $VXN. If you were in positions today and wanted to sell a Covered Call on say Radio Shack (probably the ONLY stock in the Green today), you probably made some SERIOUS jack on selling the call. Options just became more expensive. Sucks if you are buying, GREAT if you are selling!
Happy Trading
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment