Well, now that the market is beginning to fall to pieces, I’m in freakin’ Eastern Europe. Oh, well – - I’ve got fast Internet, an ungodly luxurious suite, and three laptops, so it’s not all pain and suffering. I’d just like to be even more into it than I am.
On the one hand, the market is very – - and I hate this word – oversold. One look at the ES shows you that we’ve rammed against a meaningful support line, and we could easily bounce to about 1942.50……… (more…)
My Slope+ folks (again – I think it was them – - my brain is tapioca) saw GNW as a suggested short last weekend, and it paid off yesterday – - but then again today. This chart is a little out of date, because now, it has even sliced through the Fibonacci fan level shown! I originally was showing this to illustrate how it had nailed the fan line, but the market is so weak, even that isn’t holding it up.
Good God, this trading business is for the birds. There’s no such thing as a real vacation. Particularly when I’ve got a blog that I feel compelled to contribute to (although I’m insanely grateful to iggy and contributors for keeping things going).
Anyway, there are a ton of success stories lately with ideas offered here, but one I’ll toss out is Ocwen Financial, which I’ve been harping on endlessly both here and on Tastytrade. My options are zooming higher today. I’ve closed 25% of the position but am cheerfully holding on to the rest for potentially bigger profits.
Well, I’ve been having a good morning so far. A triple-digit percentage gain my AMZN puts (I dumped ‘em at the open), and I’m beating the averages (inversely-correlated) on my short positions. I think a reasonable path for the ES is something like this:
Well, after losing money year after year after year after year, Amazon has perhaps finally worn out its welcome. I am gleefully – cheerfully – both short the stock AND long the puts, so I’ve already decided Friday is going to be a cool day. What’s particularly nice is that the stock is doing poorly in this completely retarded, helium-filled environment, so if – God forbid – the general market started to soften, Amazon could easily lose half its value. Easily.
On Saturday, I did my “Saturday Sooners” post, which – at the top of the list – included BancorpSouth as a short pick. Here we are on Tuesday morning, and plunge-a-roony. It’s a great example of a head and shoulders pattern in action.
Today was interesting, to say the least, and for wholly unexpected reasons. I loudly touted RSX (the Russian stock ETF) earlier this week on TastyTrade as the most compelling country ETF to short; little did I know it would crater today. More broadly interesting, of course, is what happened with the ES.
When I woke up this morning, I was pleased to see the ES down about 7 points. At the magenta tint, I figured the day would be all about “managing winners”. The market opened, and my portfolio sported a handsome profit. (more…)