I didn’t take a lot away from today’s market action, so I figured I would discuss leveraged ETFs and buying options in this market instead.
I have read many posts on this blog and on other blogs along the lines of:
“Portfolio up 15% in one day – Thank you FAZ”
“Bought a bunch of puts on AZO [...]
Well, the break above 805 and break below it was pretty quick. Not good for the bulls that this key level rolled over so easily. I’m more comfortable trading the short side in this market because it is the primary trend. When the price goes down, I tend to believe it. When we have these [...]
I will start tonight’s edition of Sunday Night Coffee by taking a look at $SPX/SPY.
The first piece of information I take away from this chart is that the market has proved the breakout above 805. It is simple. There have been five consecutive closes above 805. To me, this is important because it means this [...]
Portfolio holdings have been updated.
http://chartsandcoffee.blogspot.com/2008/12/portfolio-holdings-updated-on-sundays.html
Waiting for DIA, XLI, QQQQ and the VIX to confirm the breakout on $SPX, but the breakout on $DJT/IYT yesterday certainly adds evidence to the bull case.
I’m still waiting for the Dow to break 8000 (DIA $80) and the QQQQs to bust over $31.80 before I believe in the long case. It seems that this would align with $SPX breaking the next resistance level at 850. I’m also waiting for the VIX to breakdown below 40.
I’m not going to embarrass myself [...]
I am writing this post from an airplane without Internet access. My posts recently about stop diversification have touched on the more general subject of portfolio management.
I challenge my readers with the question of whether you can step away from the market for a day (perhaps two) without watching the market?
There was a time [...]
STOP WHIPSAW
I don’t usually post 1 day charts, because I don’t consider myself a day trader. For me, unless a particular day has significance (such as when the descending triangle on the Dow broke 8000, huge 1 day drop on the dollar, and so forth), I generally consider each day as somewhat unimportant to the [...]
With respect to where the broader market is headed, today looked like a bad day for the bulls but in reality nothing changed. SPY/$SPX closed right at support in the $80.5/805 area. We still don’t have a handle on whether this is the “real deal” or a false breakout.
My strategy will continue to wait for [...]
One of my favorite parts of trading is observing ridiculous human behavior. Only in the stock market can sentiment do a 180 within a two week period.
You could find dozens of more examples, but these two quotes stuck in my mind.
Today
In addition, Mark Mobius, a prominent money manager, declared that a new bull market [...]