Today market had a mini crash, at one point, Dow was down 450. At close, Dow down 311 to close at 13473, Nasdaq down 49 to close at 2599 and S&P500 down 35 to closed at 1482. I tried my best, didn't buy on bottom and sell on top, but that's OK. I recorded my day trades on http://simpleportfolio.blogspot.com/.
- I thought we'll have another big up day today since AAPL and BIDU was on fire AH yesterday.
- I was very lucky that I sold my calls yesterday, this morning, the market dropped from the beginning.
- I was too afraid of the recent sell offs, thought we'd bounce back. This was a mistake.
- Still, I started to add the puts after I watched the market for a while. I added QQQQ puts, then SPY puts and QQQQ puts again.
- Since the market tried several rallies during the day, I was scared, lowered my limit order to sell these puts, otherwise, I could make a killing. Still, I got 40% on QQQQ puts and 14% on the SPY puts.
- And I sat through some violent times when my SPY puts was 10% under water! So I was not that bad.
- When market started to tank, I sold these puts, and set limit order to buy calls. And I got them!!! Hopefully we'll have a bounce.
- I also added SSO late, but the price was not that good, I think the market maker screwed us, the price tanked AH, with SPY up AH. I don't know what's going on.
- Now all my indicators show me a strong buy, that's what I did.
- VIX was as high as 23.3 during the day, it closed at 20.74, up 15%. Today it's even stronger than Feb.27th, in VIX term.
- And ISEE closed at 84, below 100. It's even stronger than Feb.27th.
- The way market was closed (Dow was down 311, 140 off low; Nasdaq down 49, 33 points off low), I think the shorts are covering.
- This market is short term oversold. We'll see a bounce soon.
- Within two to three weeks, I see the market to test these lows set today. It may very well break these and we head lower.
- But now, I'll only focus on short term. All my plays are very risky, I need to take profit when I got one.
- And most of my funds are in cash, it's where it should be.
2 comments:
SimpleTrade,
Can you share with us what indicators you're using? How do you decide to trade during day like this? Seems like you're on fire recently. Can you move your trade log into this main site?
Thanks!
Hi there,
I used some indicators you can find for free, like VIX, ISEE, COT, and all kinds of TA indicators. I created a method to calculate these based on certain logics to give me sell and buy signals, since I only started them a week ago, I still need to refine them and improve them. I only back tested for 18 months, so it's not a mature product. I'll share them more along with my trading.
I'll keep the trade log to use this blog to focus on lessons I learned.
Good luck to you!
Post a Comment