Hi Don, thanks for your updates here. I don't post much but I read all your Index updates. You gave me a restless night a couple nights ago, after the DJIA climbed back to only down 4 from being down 130. I had bought puts on two tech stocks I follow, after riding them up the first week of Jan with calls. I was concerned that the rally would follow through yesterday, but was comforted by the fact that Wed. afternoon didn't really qualify as a hammer (even thought the candle looked good), because a hammer has to be at the end of a down trend in the market, and we hadn't really had a downtrend, only one or two down days. The slow stochastics on most tech stocks and slow stochastics in indexes still showed overbought, and imminent downtrend, so anyway I wasn't super worried, but I was some concerned. Actually I bought more puts yesterday morning with a limit order which filled at 10:00AM. :-)
I remember you saying late Dec that you were going to buy puts when the next rally got in overbought zone. I decided I would also, though I usually don't buy puts. Did you buy any?
Also read the posts recently in re exiting positions. Since I had to work today and could only peek in at the market once this forenoon, when I saw what I had hoped/expected to see, I sold the puts. It's tough to trade options when a person has other work to do. I left money on the table, but the important thing for me is that I have 100% cash to put to work on Monday. And I did make decent % profits on the puts.
You were right on for today with the DOW support at 7550 area.
DK |
