I was wrong again with my latest positions since last Friday.I thought the market recovered too big too fast, so I added DIA puts as well as DXD since last Friday. Today with Dow surged 130 points to blow away the 13000, I'm wrong again.
- AAPL had good earning after bell, so tomorrow morning, the Nasdaq should be higher. The momentum just keeps going.
- From TA perspective, the addition of short last Friday was not bad, overbought with a new week of earnings and news. I thought the housing data would be bad, and what did that bring to the market?
- Similarly, the addition of DIA puts today (yes, I added DIA puts again today, as well as small IBB puts) is not bad either. I expect a pull back, just don't know when. Maybe Friday, with bad GDP number.
- But once you rely on hope, you're losing your trading game. Am I in front of a train leaving the station, or I pick the top of this trend at the exactly the right time?
- I'll be patient and I will wait before I commit more on the short side.
- I will liquidate if I think the bulls work out the overbought condition and successfully consolidate the recent gains. Now it's not there yet.
- So be panic to sell now is the same as rushing to buy.
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