Today the market was very strong early on, took out new highs for S&P500, Dow, Russell 2000, and Nasdaq was at a 7 year high I believe. And I continued to cut puts and thought I was lucky to sell QID, DXD and TWM at a higher price (on Monday and Yesterday). Then the markets turned, Alan Greenspan spoke about the risks of Chinese crash, and U.S. market took a tumble in a hurry. This showed the majority of the traders are on the edge, they want to protect their profit and anything can trigger a sell off.
- This showed that it's really hard to timing the market. Therefore I should not time the market. A 81 year old can still move the market with a speech, wow, Alan is the one and the only one.
- Need to keep enough puts, the market is very nervous now, anything can trigger a sell off.
- And I cut some of calls as well. Now is not a time to make a 180 degree switch from short to long. Now is time to be careful and keep enough cash.
- I already had big losses, don't try to make up the loss, but try to not losing more and still in the market.
- I learned a lot today, the feeling of on the edge, the feeling of losing and the feeling of desperate moves.
- Next week I'll be on vacation, it's a great time to take a break, I'm sure it will be an eventful week, maybe the crash will start next week.
2 comments:
Is this the real deal? It's likely to have another down day at least at the begining tomorrow, considering people are nervous before weekend, and Chinese market may sell off on Friday, it can be a perfect storm.
But we have a one day wonder before, so keep enough cash, sell all longs and keep puts and add short ETFs.
I closed out my QID positions near the end of today. I'm back to the flat line with the QID over the last month. Whew!
Mostly in cash now,
David
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