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Bonds slipppage is as a result of market is now thinking that fed is proactive, the discount rate raise that should have been a negative signal is ow being considered as positive thatfed is ready to intervene proactive.. market is about future anticipation as such active Fed with good eye on inflation and overheating is helping the bonds and equities, now BKX is down but Tech and NDX is not ready to give its gains it is now upto LU CSCO's and MSFT's to sell with no selling on htat front and NDX moving higher we have this market not yest ready to take a breather, what has led this market higher is NDX if we are not breaking on that and MSFT and other leaders refuses to yield this market can ignore BKX and still move higher, that is what it is all about, very tricky, one needs to be careful and that is exactly what I am doing chipping in and getting some extra protection on one hand and taking advantage of up move with calls on stocks like AMAT INTC TXN and moving my Yhoo's to Sept from Oct.. 130 by 160's.. this kind of strategy helps.. I am looking at SOX as much I think it is 530 a resistance I also think that these darn thing unless NDX breaks has lot of potential so one needs 'hedge fund strategy' that exactly is my play, look at the liquiditiy part of it, it is liquid driven market, however never buy shares at these levels buy out of the money calls that is what I do and have liquidity and play with leverage. Game is simple that is how one can survive a major down day, the risk is your out of the money call premiums, however your loss is limited to that premium only. On the other hand if we move higher something of 11 is worth 25.. like 130's on Yhoo.. in momentum driven market you got to give up smaller moves and leave your positins to work, time helps heals all wounds I have learnt, market are no different, you get your long and shorts in the money if you have the patience.. |
