Ron, true story:
The Day the Fed Eased
On Thursday, November 15, at about 1pm EDT, I thought I had the DOW nailed. I had been waiting like a Buddhst Monk to place a PUT on the DJX, at the money. It's a game. I'm trying to catch it at a top. I'm a bear. And Thursday morning, there it was, the Dow above 8000, 8070 to be exact, and stumbling through the noon hour, promising another late day sell-off, maybe more. Even CNBS was (for them) grim (in other words, they were wearing their happy faces, but their eyes were crossed).
So with the DOW at 8070 I bought a DJX DEC 80 PUT. Just one for $425 (this isn't about money).
At 3:15pm EDT, Greenspan eased.
The DOW raced to 8400.
I had gone head to head with Alan Greenspan, and he eased. But all I lost was a battle. This is a DEC 80 PUT, and its war until the end.
john |
