ritch....not doing much, 100% cash since prior to selloff, a bunch of january short puts against the cash.
personally don't think it is wise to trade such a market. sebl a bit top heavy, it looks like it can come down.
don't feel compelled to trade or establish options positions as a high risk exists. until you see a clear high volume breakout in the overall indices, the risk may exceed the reward.
i'm extremely bullish long term, one just has to step back and look at long term charts of the indices....they do keep on going up......but there exists a time and place for everything....i prefer the prudent approach, perhaps nibbling at selective quality issues, buying ditm calls or selling low risk puts when such issues are oversold....
too easy to be whipsawed.....one must develop a maturity to wean themselves off of the all too addictive daily adrenalin rush that many newer investors? feel they must have! markets like these defy technical indicators....just look to the past, it will repeat as the new wave of investors? cause it to by trying to defy the inevitable. institutions still distributing, which is a requirement for a consolidation, without a basing nothing moves up and gathers continuing momentum.
good luck...ed a. |
