I correctly called the market actions since last Thursday, and as a result, my shorts and puts recovered greatly. But several day trades are not as good as I hoped, fear of losing forced me to cut loss, turned a winning trade into small losses.
Today market again could not put together a rally, and we closed lower again. You can feel the bears and bulls are on the edge, that's why we can easily pushed up 60 points and next hour down 20 points.
- Now for me, with lot of shorts and puts, time to sit and find my positions good exit.
- It's not a time to add shorts aggressively again, only on very strong rally.
- S&P 500 is joined by Dow to break the 50MA. Nasdaq is not far behind.
- Short the rally and cover shorts when we have a Feb.27 like sell off. This is the ideal game plan. But market is never this easy.
- Even though the market looks broken, it may still have a few rallies left, so don't get caught in the rallies.
- Hopefully this time the market finally and slowly roll over, to the down slope, for months to come.
Blackstone indicator:
- BX lost 5% again to close below IPO price.
- This tells me the bull market is over, at least for short term.
- BX is a great indicator so far.
2 comments:
If your analysis of the market leads you to believe there is a far greater potential for downward action, you can't, at the same time, rush to cover your short positions for fear that the market is rallying higher.
I appreciate your comments but many from today seem conflicted. Maybe you're just talking out loud. That's okay.
David
My idea is to sell most of the puts/shorts near the main bottom. Meanwhile, play day trade (small positions) to short rally and take profit when there is a sell off.
Maybe too much.
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