Check out the new twit, tweet or whatever lame saying bloggers are using these days.
This was geared towards anyone that can’t understand why the volume is so massive at the lows as a bear market ends.
If you see more shares traded than the float holds, something is up. Sure lots of it is daytrading and short term liqudity. But alot of it is block trading with longer term institutions building core positions. I’m still a perma bear in the big BIG picture. But you just can’t deny that the float and then some has changed hands at the lows. Sure volume has been decreasing on the way up here…but that could be read as lack of distribution just as easily as most read it as no demand. JMHO
How’s the market treating you guys? I’ll tell ya…I regret not getting into options sooner…you can turn your long term investments into $0 cost basis if you play your cards right. And from then on options can provide pure profit. They didn’t create options for the heck of it…use any and all the tools the pros created to pilfer from mainstream. LOL
Plunge Protection Team stepped up to the plate yet again today…shocking :rolljerk:
I’m currently treading water. I’ve been averaging up short positions in the leveraged ETF’s at these levels, and hedging with cheap calls on the best of the underlying securities. Examples, I’m short FAS so I have GS and JPM calls with a delta of the same amount. Every time I make 100% profit, I sell the options and re-invest in cheaper ones. This way, when the inevitable bear turn comes, my couple hundred bucks of options will go to zero, but my short positions for a few thousand will take off.
Stocks treated me great for quite some time and then I was just too busy/stressed/didn’t really care so I bought a M5, RX-7, a ton of vacations, and a house instead. I have been reading and plan to trade options next year when im not golfing of drinking. I did keep all of my long term mutuals and such intact and shifted more toward then monthly and it has been great since I made that change when the market was in the 6k range on the djia lol. So that is all I am messing with right now. Hope you guys have a great rest of the year with it!
Options are a HUGE piece of the puzzle. I’ll be implementing them and will be working on a cost basis of $0 for my long term holdings in my IRA.
I’d love to have some get togethers and chit chat with other options guys. I got alot to learn on them as I’m a 3 year noob still. Learn more every day. I love this game.
I am taking my gains and sitting until after September. I would rather trade FX anyways. The PPT does not exist, someone started that rumor a long time ago and it has been running eversince.Things I do like coming down the pipeline are EZA it is the South African ETF. Don’t forget the continent has along way to go and lots commidities and consumers to americanize. This is the last continent to get industrialized on a major scale once mining and oil drilling slow down. Have fun see you in November.
If the PPT does not exist then why does Level 2 all of a sudden start showing HUGE orders that you rarely see any other time:
1.) At 3:55 on a big down day
2.) At open when pre market is down a lot
3.) Whenever we open down after two down days
And why haven’t we had the correction we’ve needed FOREVER now?
Selling some DIA puts here while we coil with “oversold” conditions at the trendline.
Premiums are pretty high, gives me a big cushion to rework or reposition if need be.
Did anyone catch the USO/UNG CEO on CNBC looks like he is unhappy with the governments decision to limit commodity related ETF/ETN’s. Everyboby on the street knows what his game is and how the two ETF/ETN’s don’t even track there respective commmodities any more. Traderbase concerning your breakout to the downside having support you might want to add some more SMA/EMA trendling to show were the crosses are. It might give you a better picture. I am playing in the metals right now went long platinum @ 1230/oz. Hit silver for a 4/5% pop and got out. I am gonna wait to tranfer back to equities.
Interesting…I’ve never used crosses on ma’s to show inflection points. I’ll throw a few up and check it out. I fear it would give a very tight price, where I prefer zones of S&R. Any specific crosses/combos you have used with success? I love the 21ma for trending/slope reading.
I really want a pullback bad to start to spread my IRA $ out. I’ll leave some as cash to write covered calls. MSFT is a prime candidate for covered calls given its fairly low volatility.
You got balls writing options on anything right now…less so if they’re covered but still. The big boys that sold in may and went away are coming back in now, and this market has shown no problem with defying rationality and doing one thing non stop, bull or bear, for months at a time. What kind of timeframe were you looking at writing for?
Why would writing options be mad balsy now? If we go to chop (which is what I anticipate) IV should dry up. Covered calls are prime income generators when volatility is contracting. Perhaps you’re assuming your bias as gospel? I’m a permabear LONG term. But my analysis says the bottom is in for now. I don’t anticipate a collapse myself, so why would I make my moves based on your beliefs? I appreciate your thoughts, don’t get me wrong. It’s just I’m equally comfortable with my stance as you are with yours.
I wish people (not directed at you) would make up their minds. We have all this talk of HFT computer trading that supposedly made the market rise. But all the while the big boys sold in may and went away? Was it not the big boys computers glitching and grinding the markets higher? It was retail traders running HFT?
I’ve been wrong before and will be wrong again at times. But my read is that the “big boys” have removed supply and are acting as strong hands holding the majority of the markets float. For how long, who knows. When I see distribution I may be more inclined to expect a plummet more than say a “correction”.
First of all, writing covered calls would put you more vulnerable to a big bull run than a bear one, again depending on timeframe and what level you’re writing calls at, and whether you were holding the underlying anyway. I think you misunderstood, being ballsy is not a bad thing…and depending on what your strike prices are you may not in fact be being ballsy at all. I don’t think we go to chop just yet since volume suggests the market doesn’t like these prices but I can see your argument.
And I don’t think HFT computer trading was making the market rise. I think it was making a lot of little arbitrage profits on the run upward that went into GS’s pocket, by churning some of their massive holdings. I think they bought big into the march lows to start the rally, but did a lot of buy and hold. They saved their powder for big buys on the major dips every time the market wanted to correct, playing PPT to scare the bears. The retail investors filled in the gaps believing everything is sunshine once again and not wanting to miss the run up.
Also JMO. And what do I know, I don’t even have a $25k+ account any more. Decided to pull a lot out at the end of May when I didn’t believe the rally, but didn’t want to bet against it.
Anyone that has faith enough to put money where there mouth is deserves respect. Traders do this sometimes daily. The irony is depending on timeframes we could BOTH be right.
Why pull it when I could just get stopped out of UNG for $100 loss 89 times? :roflpicard:
That thing really is a piece of crap…Plays “how many days in a row can I set an all-time low?” I’m surprised they didn’t kill it yesterday instead of DXO…she was always good to me
