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Earlier today I did a premium post which stated I would be going long bonds. Indeed I did. I bought a bunch of calls. If you know me at all, you know how short my long positions last, and I got out of it already at a nice, quick profit. Suffice it to say I’m back to “pure bear” again, albeit with 50.8% cash.
This has been an amazing week; let’s look at the ES:
Good morning, Slopers! Isn’t this market a blast? And I say that on a morning when the quotes are ALL green. Doesn’t matter……….this is the most enjoyable and most CHARTABLE market I’ve seen in years.
Of course, the mainstream media, which is 99.99999999% permabullish, is spending all its energy looking for reasons for the market to bounce and stating just how insanely oversold things are. Here’s a favorite (take note of the headline……..):
Let me take a break from the mountain of excited emails flooding my inbox (actually, not a single person……..) and offer a bit of a life lesson with respect to charting. It has to do with this:
In spite of it being merely four days long, it was a really good trading week. The one giant blemish was how I bungled my AAPL trade, which was a tremendous success from an analytical perspective but an utter gaffe personally, since I managed to completely avoid the 200%+ gain that ensued a mere three days after my post. I mulled it over a long time, and I wrote down this short but sweet ruleset:
An ENTRY is based on a discrete rationale An EXIT is based on the violation of that rationale OR a discrete profit rationale There is NO PLACE for whimsy
The first rule I nailed perfectly. My entry was indeed based on a discrete rationale. More specifically, it was based on my superb analysis! It’s the rest of this compact little Guide to Life where I completely muffed it.
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