- If I closed the long yesterday(market up 3%) and started short yesterday, I will be in heaven now.
- After today's 3% drop, my SRS is still down (sold at 6.1, now need 7.6 to buy back) and SPY and IWm puts are close to be even.
- Added SRS at 52.35 today, it closed at 55.7, so this one is good. Could buy today at 50.1, didn't put the trigger. Remember, for SRS to go down 18% in a day (yesterday's low was 48.1, and I watched for a while and didn't put the trigger. That's the time to be wild and brave. Should at least buy 100 shares; or even try the 55 puts at 4.1, now almost doubled to 8. I was thinking sell 45 puts for 4.4 and buy 55 calls yesterday, that could be a great move, can close the puts and calls.
- What's more, even today when SRS was down hard, from 52 back to 50, I can get the calls (55) at 4.9, and now it's 8. That's how powerful the day trade is.
- Now, let me summarize what's right for the future trades:
- For leveraged, like SRS, should not hold for too long, take profit when you have one, specially if there is a shot up like 10%. Today should not count since it's recovering from yesterday's 18% drop.
- For options, I should choose IYR and IYF, around 1K each, close to 1 or 0.9. For Fed. I think still got three weeks left. Don't try double ETFs.
- Think to close 1 MOS puts in IRA and bet March puts? 1/3 now and 1/3 later?
- Don't trust xTrends too much, and add gradually, in case I am wrong.
- Looks like the Obama's package won't do anything, and it could be delayed by GOP. I think they need a market tanking as a cover to push it through.
- When market hits 600, then it's time to do the 3x inverse ETFs puts, can get 100 points in one day, since market can rally 12% and the 3x financial can rally 25%, make it 75% on the down side too. Specially if it's close to the OEX, will be a dream.
- IYR and IYF March puts maybe a better idea.
- I don't think sol and attila are right this time either, they may get 700 in Feb, but not the 600 or 500. That will come later this year, like in Sept/Oct. I think we may hit low in Feb/March, then bounce; then crash again. Use it well.
- SRS will be my main trade tool. IYF and IYR options.
Thursday, January 29, 2009
One day wrong
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