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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: Proud Deplorable who wrote (7273)	12/12/2007 5:44:57 AM
From: SliderOnTheBlack	Read Replies (3) \| Respond to of 50536

Sinclair re: "bluff, bluff, bluff." -- whodathunkit? Buggers, Now is the time to cash in those puts added for insurance at HUI 420, 450. Unhedge into this pullback. Take some/all of the put sale profits, and buy some calls into the weakness. Or, even better yet... Take the profit from your puts and bank it, and then start "selling" puts -- to discount and/or to FUND your re-entry here... using your proceeds from your put sales to start buying some calls. If you took profits and got fully hedged, then this is setting up perfectly for another re-entry. The "question" and the "trade" was not whether the Fed cut .25bps, or 50 bps. The trade here is on the question of whether they will continue to cut, to continue to add liquidity, and continue to inflate. -- it's an election year. -- the credit crisis is still unfolding. -- banks need liquidity, and lots of it. -- the Fed must act proactively on the massive adjustable mortgage resets coming in Q1, Q2 2008. -- housing is still rolling over and consumer confidence now hinges on jobs, and the stock market. -- jobs and the economy are begining to roll over - so the stock market must be propped up at all costs (at least until the banks right their ship, and insiders get their money out...more on that later). Be smart here. Take advantage of the "enemies mistakes." Use the Wayne Gretzky theory of trading here... Gretzky when asked why he scored so many points and always seemed to be in the right place - at the right time, said: "I don't skate to where the puck is... I skate to where the puck is going to be." And that is how you should be trading. Don't react to the market -- anticipate it. Skate to where the puck is going to be... not to where it is. HUI 380 needs to hold technically. Sub-400 is where you cash in your insurance and "begin" re-entry. Plan your put/insurance covers...put sales, and call buys/re-entries accordingly. Average in... slowly - gap your buys. Use those put sale proceeds to fund your "initial" re-entry. There was no fight, or battle to be fought,or won here. The trade here was to have already "skated to where the puck was going" -- to have already banked the bulk of the run from the washout bottom of HUI 280, and then cashed in at 400, 420 and 450. Now... get repositioned. And the beauty of it, is that the insurance you bought, is now going to fund it. If the Fed does what the Fed does best (inflate), the puck is going to HUI 520-550 and Gold is going to new all time highs. Mo later, and keep those skates sharp. S.O.T.B.