A autopsy of a days post..An inter day trade properly closed with excellent returns and no whipsaw.. this is how we play these markets every day and the long puts established at 1380 break for 1250 are still in play.. that is insurance this is trading... never mix the two.. with insurance you have liberty and free mind to trade.. market is not about huge fall is coming it is about cashing the movements.. 99 out
of 100 gurus have no idea of how to cash.. as far foretelling disasters we are still paying a price of Nostadamus Paco Rabonne shops are closed today becasue Paris can turn into ruble this centuries old predictions still rule our lifes but marekt you should give positions to enter and exit...otherwise like Nastrodamus your worth is like a person who yells fire in the cinema..market is about making money when volatility hits the markets ...
First established early Monday when to expect the selling if 1297 is taken out..establishing a point to go short that was 1297 was first strategy, I also highlighted that below 1297 they will test a low below 1293... i.e. they will make a new low since higher bottom theory goes out of the window..
Monday, Aug 9 1999 2:06PM ET
Reply # of 28073
<<I love to see some volatility, I perfectly see that the best bet considering market bearish sentiment would be to go long 1250 puts for Sept each put protects you for 250,000 $ and will cost you may be 15-16$ if you have a total core of 100,000$ (g)portfolio this one put is more than adequate for that big fall if it ever comes, however a turnaround will diminish the premium of that put but will increase the size of the core.
It is simple strategy but to come to market where you need to be invested all the time you can rarely run with huge cash positions you just don't get any returns. I am lot of cash but since I do options out of the money I have luxury of leverage, if it moves up I am happy as I have advantage of out of money cheap calls if it breaks by Sept I have these long 1250's and in betwen below 1297 I will play more on down side.>>
Next defined my outside limits of this break below 1297..
Tuesday, Aug 10 1999 3:07AM ET
Reply # of 28073
AT//... Look at this S&P chart and notice this concentration of tests at 1290 area.. if we break this we can on inter day basis our next objective would be 1250 and next 1230 that is it where the selling will dry off
Rallying from lows....
Yesterday as market tumbled and NDX PSE and SOX remained bid I wrote..early in the session..we dropped but 2111 support on NDX was not even seen and 490 on SOX held well... based on this I called for rally from lows
Tuesday, Aug 10 1999 10:43AM ET
Reply # of 28072
Look at this ..
quote.com
WE are at 2485 on Comp and 1283 on SPX last time we were in early June on 1283 on SPU the Comp 2380.. a full 100 points below.. NDX was at 2000 and now it is 2158.. so the big core stocks and SOX are not selling until that does not break the big break will not come the SPU will rally from the lows of todays until NDX takes out 2150 area solid...
Once the anamoly of SPU NDX was spotted and I pointed that we will rally from the lows squared the long puts established at break of 1297..
Tuesday, Aug 10 1999 1:09PM ET
Reply # of 28073
<<I am squaring my long puts of Aug 1250 and short calls of 1380 Sept at this area 1279 on SPU.. expecting that market will hold above the 1282 area... I will again reestablish 1250 1380 combo if SOX breaks 491 or DOT or NDX takes out 450 or 2111, at the moment a net of 3.7$ on this calender spread of Aug Puts and sept calls is a good wager for today's downdraft.. if we have room for second trade we will get in.>> |
