Obama won the election! This proves that in United States, any person can do it! We are the best in the world! As a naturalized citizen, I am proud to be an American!
Back to stock market, I think the rally out of the Obama victory will fade, and we are back to reality in the market soon.
As a result, I sold some covered calls against my MOS and KOL. This is to add downside protection, and if it rise too fast too soon, I will be glad they're called away.
- I sold covered MOS Nov. 45 call and KOL Nov. 21 call today.
- Sold some speculative play in DRYS and ING I picked up last week for very decent gain today, small positions though. Too bad I didn't add big positions, since I was burned too many times recently, in MS,WM and WF.
- I'll consider to sell some OTM puts.
- Short term, we may see a pull back after this rally fades.
- In a few months, I see a range consolidation, before we break one way or the other.
- Long term, we'll find out if the Oct. bottom is the bottom, or just a bottom in a bear market.
2 comments:
I was guessing that market will rally towards election day then sell-off. Looks like other traders had the same thought. 10% sell-off in 2-days. Traders like 10% as a good 'correction' number. Tomorrow might be up temporarily but then I have no idea towards the end of year. Traders like Dow 8000 mark as a floor for double-bottom. Now people start talking Dow 6000, just like talking oil $150, it could well get there. Stock and commodities market are really psychological game. I read some book saying that psychologist has better chance to win the market than financial people.
-ryan-
True. If you know the how most people think, then you have better chance to be a trader.
I think people all think we'll have a bad number tomorrow, so they sell off. I think if the number is not too bad, we'll have a decent rally. I see S&P back to 1000 in Nov. May even test 1070 area. I added DRYS back today, since it's down 20%. I'll trade these stocks now, can't hold for long, seems it always crashes.
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