A small step

After I sold everything last week, today is the first day I traded. I executed based on last night's idea and it turned out to be great! Today we had a negative opening, market bounced back, then sold off to low, and then bounced back from 10MA off Nasdaq and S&P, closed almost at the high of the day, which is the routine of recent drops.

1. One of my indicators I developed recently gave me a signal to short very short term, that's what I did accordingly.
2. I bought 2/3 of IWM puts just after market opened, but it dropped quickly, and I added 1/3 more about 20 minutes later, almost at the bottom of the daily price, and two hours later when the market was in the bottom, I sold it at the high of the option's daily price.
3. This is my best daily operation for more than 30% gain. Yes, it's not big position, but it's a great first step. And the put option ended the day at the lowest daily price.
4. After the open, I also added DXD, when it dropped, I added again. And I sold them later when market started to rise, telling me another "buy on dip" coming. It's a small gain, but, it's a gain and now I'm back on cash.
5. If I hold them to the end of the day, they'd be losing position!
6. And I shorted GS today above 218, since I waited several minutes and saw it shot up quickly. I used a limit order to get it filled. I covered it above 213 when the market started to come back. From performance point of view, this is the second best daily operation.
7. Once the market started to come back, I found one stock that's very speculative, UNP, earning tomorrow and with good gain on a down market, I added some calls using the profit I got from IWM puts. Let's see if I can play both side of the market.
8. I still hold the position. There was a talk that a private equity group wanted to buy Canadian Pacific, so this maybe a good play if the market is on fire again from M&A news.

What I did right today:

1. Wait for the setup.
2. Take money off the table quickly.
3. Don't be greedy, this is the key. How many times I had great profit, but I held on to only lose big at the end because of my bearish view. Today I did the right thing, got the chance to short and covered it quickly.
4. I learn from the ruthless bulls! Thank you!

What's next:

1. My view is that we'll have another push higher tomorrow and maybe Friday, depends on earning news. IBM certainly helped bulls' view, and we have GOOG report tomorrow.
2. So I'll wait patiently for another setup, using these indicators I worked recently. I think the next big setup for trade is still on the down side. But before that, we may have a push higher.
3. And always keep cash and always exit quickly if that's short term trades.