I took some losses today as the market decapitated momo traders, but when you have a few shorts on the grill everything seems to even out.
Right now I’m up huge in my [[MA]] puts, followed by [[DE]] puts, followed by [[BIDU]] puts, not to mention my [[CHL]] puts. It amazing and rather fun watching the stocks fall lower and lower. Make sure to keep an eye on [[V]], it may be next.
Today’s lesson: If you feel the urge to get long this market, make sure you have a few short positions on the grill to watch your back. Who knows what this market will bring.
Damn, it was an ugly day!
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Welcome to the Dark Side, Cajun.
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I am very satisfied with myself after practically killing myself early on in the day trying to lighten up and position for a bounce, and selling my SQM puts and buying more calls…
Damn it, why do I listen to the “oversold mantra” that’s stuck in my head. I just didn’t want to believe that Ags or coal could do anything but go down.
However, I managed to “man up” and realize that there are a whole new slew of puts to buy. I aboslutely showed steel balls buying a very large position in SOHU puts when it was around 75. The float is low, which could be dangerous since someone could come in and consume a very large percentage of it, but it also won’t take much to take the stock lower.
I then thought to buy shipping at support, but I was patient enough to think through my decision, realized that coal was breaking down, and that support would probably not hold, and I realized that the drybulk rates would plummet, so I bought me some GNK and TBSI puts.
I’m pissed at myself for selling out in solar when I did, and not waiting it out. sold SOL and most of WFR. My line of thought was, I think FSLR breakdown is going to be huge, so I better clear up cash now so I can get in. I was hoping to grab some FSLR puts when solar bounced, but at this rate, FSLR could knife through support and keep going without bouncing.
I’ll have to think this one over tonight.
I had to go out this afternoon, and returned to find myself very much on the wrong side of ICO (no big deal), but that was more than made up for by plenty o’profits in MA and CAT. Ended the day up nicely overall, many thanks to all the godly folk at IBC.
Going to try and take it easy now before the July 4th holiday, no sense in trying to make myself crazy trying to trade a crazy market. Plus who knows what fresh hell Trichet and the ECB has in mind for us tomorrow.
SWN – failed moves bring fast moves?
i almost got my face ripped off today. i took off my short stuff yesterday, in anticipation of a bounce until monday, and tried a long trade. that lasted about 15min, before i realized my error and quickly bailed.
ironically, right after i bailed i was surfing around, and i saw your post about buying apple for the late day rally. i said to myself, ‘if RC anticipates that and is correct, he’s got his own time machine. no other way.’ lol
i should have gone back to the short side, but i just went and got some lunch instead. ugh.
Hattery, your analysis is comforting to me. I have been short FSLR for two weeks, and today was like a sitting in a cold bucket of ice after having my balls candled for eternity.
I very nearly just closed the position yesterday, after it got back over 266 again at the close. I decided to give it one more day.
Today it knifed through the 38% fib like it wasn’t even there, and then all the way down to the 23% line before it paused briefly, only to fall more. This sucker could easily go to 219.60 (200 day EMA) in the next couple, I think.
I got left holding the bag on NVDA. I was long July calls, that are now worthless thanks to NVDA’s massive dive off a cliff. Fortunately it wasn’t a big position.
Position sizing saved my ass yet again.