Monday, March 19, 2007

Tough day for shorts

Market was sharply higher today due to MA activities today.
  1. Nasdaq, Dow and S&P 500 were all up about 1.0% today, so more than 2% loss for SDS, MZZ and QID.
  2. More loss for QQQQ puts. This again tells me, in a dull and directionless market, puts and calls are bad positions to hold. If you're wrong, it's very tough.
  3. RIMM was very weak today, down in a up market, but the volume was light, so doesn't spell big trouble yet.
  4. Since all my puts are months away, and I'm convinced that the general market will go down, so I'm not too worried about the positions. RIMM put is also months away, so no worry about RIMM either.
  5. Things learned today is, markets always give you chance to buy at lower entry price, like today is a good day to buy puts and short ETFs. Too bad I already committed with shorts ETFs, it's not a time to commit all, so no action for me today.
  6. Two leaders of market's recent bull run, GOOG and AAPL pointed different picture for the market: GOOG was weak and indicated lower market ahead; while AAPL was strong and indicated a higher market in the future.
  7. Tomorrow and later this week's housing data may move the market one way or the other.
  8. For now, I think today's market rise is market's way to lure more people to participate and then take them down. But it's painful for me nonetheless.
  9. A bear market has the ability to prevent people from exiting; while a bull market prevents people from buying. That's the nature of the market. When you finally realize it's a bear or bull market, it's already too late, you have larger loss (or smaller profit) before you can exit the positions.

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