Sitting here watching the days action and when the SPX stopped short and sold off a bit at another technical level I decided to get short. I already had on a small SPY 115/116 short call spread, so looking at the QQQQ chart it looks like nothing but white bars and the incline is very steep, just don't think it can last. So I chose the 50/48 put spread to buy since it would have to almost break a new 52-week high for me to lose. I just don't think we're ready to break a new high on top of the action the last few weeks. If I'm wrong I lose. I paid .96 for something that was intrinsically worth a little more than that at time of purchase. So I'm comfortable. I used quarterlys so I've got until Thursday of next week. Also, I am going to post my SEP OPEX plays tonight.
Many of you have been reading this blog may have noticed that my blogging frequency has increased over the past few weeks as I got short the market. As you can imagine I am down money since getting short the market, this is the time when most people pull away from posting. But my goal is to stay active and involved and show you that trading is not always rainbows and butterflies. It is times like these that the things I have been sharing over the past couple of weeks are so important. You need to trade small relative to your account. I have a decent short position in the market and my portfolios are set up to make some awesome returns if we finally turn lower. But something I would like to point out is that my account is 70% Cash. I learned a long time ago how important it is to live by the rules you preach. Because of my discipline I am able to continue to hold my positions, I have time and capital on my side. I can't stress enough how important it is not to get to big....




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