I was defeated again by my reckless decisions of using options and holding these options against the tide. Now I need to go back to basics of trading, just use ETFs and stocks, and I won't run against the time.
- Market was higher again today, I sold last index puts for huge loss again.
- I think the market will likely pullback tomorrow or Friday. FXI is a great short target. Most home builders shot up higher 5% early today, to only lost more than 5%, HOV is an example. So the shot in the arm (rate cut) is over.
- Tomorrow we'll have GS number, can get better look into the impact to investment banks. In the end, it's the earning that decides the market direction, not Fed rate cuts. And earning depends on economic cycles.
- On the long side, I like GLD,SLV and GDX.
- Oil is a wild card.
- Since Fed will add liquidity to the market and encourage reckless traders, momentum plays like RIMM, AAPL and BIDU will have more upside to go, until they can't go up any more. Hard to predict a top.
- So I'll wait on the long side if not feel comfortable to short. Nothing wrong with that.
A famous saying: in order to become the great, you have to be defeated, embarrassed by your mistakes; then you'll learn from it and become the great. Now, at least I have the first part in place. I just need to learn from it.
1 comments:
Many bad news everywhere talking about recession, but surprising Wall Street climbs the wall of worries, practically ignore all bad news, and shoot up on good news. I'm influenced by news I was reading and got burnt too this time. Again, follow the market always work but I don't have time to keep watching the market. Hope none of us are shorting BIDU, RIMM, AMZN, AAPL, and other 'hot' stocks.
ryan
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