First, before I get into this post, I would like to commend The Fly for milking the financial industry for everything it’s worth on the short side. I also would like to commend Jake the snake as well, he has been dead right on the banks.
Now on to today’s action…
We have another chop fest in the market, this is a very tough environment to trade in and remain sane. Just today I watched beautiful gains from shorting [[GOOG]] disappear into thin air. I also witnessed spastic moves in many momo names as well. I’m willing to bet a lot of traders are getting wiped out– up 100 points, down 100, up 20, down 60, ect.
Normally when we get swings like this, the market shits the bed not long after. I believe we are not done going down, but to be sane, you must pair your shorts with longs.
Option Addict preaches having a Delta Neutral portfolio, I couldn’t agree more. Basically, all this means is you’re short the same amount of shares as you are long.
This type of strategy just make sense in this environment. Find your strong stocks ie. [[CELG]] and pair them with your SOHU’s.
Today my biggest winner was [[YHOO]]. Odd, no?
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