Slow but firm

The market was flat today, waiting for CPI number tomorrow.

1. From now on, I will be slow but firm in trades.
2. Slow: wait for the best entry, be patient, don't rush to trade an idea. Market usually gives you chance after chance, this is evident in recent subprime mortgage stocks, momentum stocks like RIMM and BIDU, both cases are for short or put.
3. Firm: once a position is in, and there are fundamental and technical reasons behind it, then let it run for some time before I decide to pull it off. Don't try to play swing trades and over smart the market. Bet on the main trends.
4. This week I rushed to sell QQQQ put and RIMM put on Tuesday, not even at the low of the day.
5. Then yesterday, market sold off again in the morning. That's the time to sell the puts. Yes, it's almost impossible to catch a bottom or top, but the principle idea is, try to predict what's next for the market and act on it.
6. Usually after big selloff like Feb.27th and March 13th, the overseas markets will sell off, and that put pressures on the market opening next day or two, which is usually the short term bottom (like a few days). This proves to be true in the recent two relatively big sell off. Use it and remember it. The difference is more than 2% on March 14th and more than 2% on March 1st (the 2nd day after Feb.27th).

PM got big bounce today:

1. Mainly due to the unexpected large PPI number, inflation is not dead.
2. Gold is oversold recently, so gold index got a big bounce today.
3. Potentially, we can have a stagflation, that is, slow growth or recession, but inflation is high. In that case, PM will do really well.

What's next:

1. I think market will drop another 10% or so short term. Does it has to be 10%? no. The idea is to profit from another down movement in the market.
2. RIMM will drop big long term. 40-60%.
3. PM is not done with selling, but will add them when I think the sell off in general market is over. Yes, it's closer to the bottom than the market.