Market crashed. Dow is down 18% last week, Nasdaq about 15%. On Friday, Dow's intraday swing is over 1000 points! Vix hit new record in the 70s and closed at new records. Now Dow is down 42% from 2007 peak, S&P500 is down over 40% as well.
- I sold UNG Friday, and moved most to SSO and raised cash a little. I think SSO will perform better than UNG if market rallies.
- Now I long MOS, SSO,KOL,MOO,QLD and MF. IF the market continues to fall, I will add long positions, most likely SSO and QLD.
- I sold MS and UYG, about 50% and 30% more than their lows on Friday. Now, if something comes out G7, they can easily go up 50% and 30% in one day. MS is very risky at this point, can go to 20 or down to 5, depends where the Fed will place the rescue tag.
- Just two weeks ago, MOS is above 80 and now is at 36, and its forward PE is about 2.9. Even if they miss, I think PE at 5 or 6 is not too bad. I can see it double within a year, if not more.
- The reason we sold off all over sectors, is because funds are liquidating their positions, this explains gold's sell off on Friday as well.
- After dust is settled, this is the great place to be in the market, a 10-15% rally is likely.
- I will be brave, calm and cool in the future, in trading and in life. This is not a time to panic, this is a time to perform and do the right thing!
2 comments:
Wow, you still have the nerve to add SSO on Friday, very cool! I was afraid. Many bloggers I followed said "wait and cash is king!"
Oct 15th, another crash. I think Dow is looking for a double bottom at 8000, so tomorrow it may go all the way down to 8000 before rebounding.
Same with you. Lost all my profit in the past 2-3 weeks. I've been waiting for rebound, but got burned almost every day. Never see market like this before.
-ryan-
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