Guess what, I woke up 7:00 AM so I missed majority of the fun! I’m particularly mad in not buying China Finance Online (JRJC) long- that was the best low risk/ high return trade in my set up. I also missed the ethanol (ANDE, PEIX) and speciality metal bounce (TIE, ATI, RTI). As I noted earlier, these stocks are “market sensitive”, so when the Dow shot up 70 points, these stocks led the pack together with the metal commodities. Finally, I attempted to do a pull-back short on Ballard Power Systems (BLDP) but there were no more shares to short available! I guess that’s a problem when you go with a “small” online broker like Scottrade. It would have been a good 1 hour trade.
There was just one problem with the market- too much fear. The Dow and Naz were well on its way to 2% gains, but in the final two hours of trading, the rats jumped off the boat when news of rising oil surfaced. Other gains that were noticeably wiped away were in the metal commodity related stocks. The commodities were up “on speculation that the run is not over”, but there wasn’t enough strong evidence to keep the momentum up. At least gold is back to $670, and copper staged a major comeback (about 11%).
Well, I missed the rare and beautiful day trading setups, so I ended up just doing an overnight short in PEIX (perhaps it went up too high), and STP (which showed a lot of weakness in the final hour). I tell you, it’s tough to sleep early in my house; plus my room is being occupied so I’m away from my usual station. I think the hardest part about day trading is realizing that you missed a day with huge opportunity. One final note- the Dow is closing in on 11,000… a very strong pyschological spot.
