Anything is possible. A 2nd crash isn’t out of the realm of reason IMO.
You need to look into diversification to some extent and also as I mentioned prior…look into selling covered calls on your long term plays. If any accountant or advisor looked at me odd when I suggested covered calls I’d run to a new advisor that had proper knowledge. Covered calls and/or collars are the way the big boys get their cost basis down…at that point you’re essentially devoid of risk.
im not sure what covered calls and collars are, please explain
http://www.theoptionsguide.com/
This site is a good one to study up on options.
Just made $4k on the YM bounce…on paper. 
There was price contraction at the support on Day, Week and Month charts. A bounce was almost a no brainer there.
You can further see here the support I’m referring to. A reversion to the mean is pretty likely at minimum, IMO. You can also see the volatility widen in the new channel. Compare it with the prior balancing channel and you see why I’m concerned for the bulls longer term?
damn i wish i had your kind of understanding, i just made 500$ on Ford when it hit 10.53 and sold it from 10.23, now its at 10.40, but 4 g’s would be a real nice profit =D i just hate remembering that all the money I make will be taxed at the end of the year
Good point, might have to rethink that one.
Ask yourself…“is price attracting volume or is volume attracting price”
The question sounds weird to most. “Why would that matter” or “isn’t it the same either way”. The devil is in the details. One explains an auction with ongoing momentum and the other an auction that is exhausted.
Sold half of my BP at closing today at $33.20…Cost basis $27 
Just too many variables there. Will likely buy back on a dip the next time someone comes out with a news report that the Gulf is still fucked.
Nice work. I’m curious how you caught the knife at basically the bottom without bleeding. Any TA signal or what not? Did you put lots of dry powder in on a guess at the bottom to bring the cost basis down? $36 looks likely but I wouldn’t hold a full position expecting it…scale out or sell into momentum is the right thing to do. I think you made a good choice…not that what I think matters. 
i been wondering about that… i can’t believe that they would fail… it’s just a matter of time before they regain value… wouldnt this be one to go long on?
Merck closing 16 plants and laying off 16,000 people World wide. This can’t be good for World wide employment numbers. Although 16,000 is a small part of 6 billion. lol
Do you see what I mean by my recent statement? Today volume drove/attracted price. The edge has to go to the bulls because though we attempted to auction down there was no follow through (and taken in context of yesterday).
Anybody looking at Strangles here with the expectation that volatility should rise after a tightly balanced day?
---------- Post added at 03:49 PM ---------- Previous post was at 03:27 PM ----------
DOW is now at a level where bulls should NOT enter a new trade and should be reducing risk on existing positions. Don’t buy resistance and be a laggard. You missed the boat, now wait to see if resistance breaks and becomes support!
you know how many lawsuits are gonna follow that company for years to come? i dont, sucks to be them
“Be greedy when others are fearful”
The world thinks they are done for…that makes for a great sleeper play. I would let VIX kick up one of these days and sell naked puts if your allowed to. Take somebody’s premium and shave that cost basis down with free money.
I had noticed that every time it had previously dropped below 30, it picked up strong volume and rallied very quickly. When it opened below 28 on Friday 6/25 I figured it was an an overreaction due to hurricane fears and was as good of a guess as any to enter. I bought 50% of what I was planning on investing, saving 50% to average down at 22 if it ever got there. Now I’m just holding half of that. Will add below 30 unless it looks like a straight disaster.
Bought some FAS puts today. THe 50-day moving average on the S&P broke below the 200 which usually means stormy waters ahead. Also I want to protect profits on my AIB and ING calls from the 5/6 crash.
Still sitting on that turd UNG but at least I keep selling covered calls against it every cycle to lower my cost basis. If it actually rallies and someone exercises and takes my shares for $9 each, even better.
such sexy talk… i’m 100% clueless
You guys see what I’m showing here? IMO people should look at the market in terms of VALUE not price. Ask yourself what does the majority feel like currently? What is the status quo and how satisfied are they with their positions?
VALUE areas are where price is = to value…aka the market is in balance. These levels tend to act as future magnets. And whudda ya know, we’re in the pocket I highlighted yesterday with the red. The market is testing it’s balance. This is where you exit or reduce long positions and wait for the next signal before entering a new directional trade. Also note, balance tends to bring mid term balance so consolidation is a good possibility here.
So one could sell options with the expectation of shrinking volatility perhaps. Or one could wait for volatility to shrink in this value area and then buy options expecting IV/VIX to kick up on a break of balance.
Just my 2 pesos.
im all out for now, i dont have enough time to watch the market and sell and buy at moments notice =(, i pulled my 40gs out, im hittin the sidelines for now, and even if that 40 could of been 200 gs next year, i only started with 5, so im happy =)
now i just cant wait to pay taxes on it next january!
10 brands they may dissapear in 2011…
http://finance.yahoo.com/banking-budgeting/article/110018/10-brands-that-may-disappear-in-2011
(Didn’t want to start a new thread so I threw it in here)