Wednesday, May 24, 2006

Not a U-Turn

Whatever reversal has occurred up until this point is now over and done with. NDX-100 posted a very promising rally at 1580 level and the brutality of what followed carried a truly ominous undertone.

We've sold most of our NDX calls into that rally and into yesterday's decline. The sales were not pretty and I have to say we're still reeling from the unforgiving and relentless blows dealt by the market.

Housing sector favored a bit better where several spikes gave decent exits to our long call positions but even then none were anything to write home about.

Something wicked this way has come and while I am as convinced as ever that this is a massive opportunity, I think it pays to take a safe stance and trade new lows as opposed to acquiring large lots in anticipation of a prolonged rally. The rally will come, but the idea is to remain at least solvent, if not outright profitable, until it does. :)

Currently we're cautiously selling credit spreads in Oil equities and some Housing names. Our long strategy is gaming new NDX lows for a trade.

Stay on your toes folks. This is a tough environment so don't let frustration cloud your judgment. Emotions aren't helpful in any market. And they are deadly in this one.



At 8:14 PM, Anonymous Anonymous said...

If your interested in setting up a limited liability company then please check out my government grants site

At 12:25 PM, Anonymous Anonymous said...

You have a great blog. Please feel free to check out my site erotic hypnosis and leave me your opinion on it.

At 3:56 AM, Blogger Stress Help said...

Wow! This is an amazing blog! :-) You might be interested in my Self Hypnosis blog which has basic info about hypnosis (including uses and health benefits). If you get a chance, drop by and let me know what you think.


Post a Comment

<< Home