Wednesday, August 29, 2007 at 04:31 PM
Wednesday, August 29, 2007 at 10:31AM
That video pretty well sums up how I reacted to the market open.
Then I realized we still have plenty of time left before the bell.
I have been able to get my feet modestly wet over the last week, but still not fully operational like I was pre-Chicago. I haven't seen the types of gains I had wanted to see yet, but I haven't lost anything, which is not surprising.
I will say that I have never seen volatility like this in my career. It is unreal. Regardless, I still won't trade VIX options (I have 3 unread e-mail on this topic). I haven't heard much day trade chatter, but honestly that is the only place to be right now. Place your bets at the open and cash out at the close. Anyone long the Russell right now?
Before I go forward I want to pay tribute to the Hurricane Katrina anniversary. I have talked with people that were involved in this disaster and want to take a moment to let them know that they are in my thoughts. I'm glad to know that many people made it through everything and have been able to move on.
Today will be remembered as a festival of charts here on Option Addict. I didn't have the time or motivation to be creative, otherwise I would have thrown these into a slide show while playing some good tunes in the background. Here's part 2 of my watchlist...
$SPX
I talked about this earlier, but keep an eye out for the inverse head & shoulders. If you are bearish, of course.
VMI 
SGR
RIMM
OMG! It's OMG!
MTG
GRMN
GLDN, one of few long term positions I am still sitting on. Looking to add on the upcoming breakout.
CMI
CNH
BIIB
Well, that will conclude the festivities. Thanks to those that showed up this morning.
Recommendation: Have a good one!
Long: Lunch
Short: Work
Reader Comments (209)
Raimo- Love, love, love the poem.
Kim
I appreciate the posts about timeframes. I need to clearly define my timeframe per trade. I get caught grouping my trades all together and treating them the same. Although I didn't have time to trade while I was gone, I made time to review trades that didn't work out. My biggest losses were on the days that the market lost 2-300 points. I didn't have a plan for those trades. I had a mental stop that was triggered, but nothing that said GET OUT NOW. I waited until the end of the day to exit and my losses were even bigger. Moreover, I was being successful previously to those trades and the big losses hit my mental persprective hard. I am not sure what rule I will create when the market is moving against me and takes my trades with it, but I WILL NOT enter another trade until it is fully planned. Any advice would be great.
Jeff, thanks for the watchlists...I have plently of homework tonight. I am glad everyone made it back safely from Chicago. Where's the next conference?
Glad to be back!
Amy
You both think your real smarty
Enticing the bears that makes me nuts
Don’t the two of you have any guts?
I hate to be on the other side
But with the bulls I have to reside
I cannot sit here and remain quiet
Nor do I look to incite a riot
I do fear that you guys could be right
But I am not going down without a fight
Bring on your bears I will swing with my sticks
Can I please get some help from the good ole VIX
Where the hell are my Bulls they are leaving me stranded
Running with the bears I hate to be branded
So Brett and Arty put up your dukes
Let’s fight off the bears they are nothing but flukes
Come out of the dark side step into the light
Cause Raimo here is going to fight……
Raimo, the poem is priceless.
All,
I think the market is going way down next week for sure. Call me crazy, but I found it highly suspicious that a ton of bearish news came out all at once in mid August and its been bit quiet since. I think the banks will ALL decide to give their bad news all at once to push the prices way down and create a buying opportunity for themseleves. Who was it who said that the little guys go out of business and the big banks get bailed out? They are really pushing for a rate cut.
Jeffy boy that is the funniest video I have ever seen. you are hilarious. thanks for the conference call. Congrats on the year you made 300%. I dont know if my comfort zone could handle that but I am sure trying.
The dow is in a funny range between 13125 and 13185 that is until the financial aliens make it go lower. Buy puts.
SFM
I am trying to make my timeframe super short and just play from support to resistance. This is different for me as I prefer to ride the trends but it seems to be working so far.
PAYX is redeeming itself today and I think it still has a chance to run up.
I bought puts on XHB when it just peeked its head above $24. I see very short term resistance there. Here's hoping I can take a ride down. I am watching that one like a hawk.
do you think it's time to take profits on KBH?
Sarah
All the symbols seems to be in great set up. Thanks as always...
Meena
Thanks for the list!
Sarah, I took profits on KBH this morning. Should have taken them on a few other Sept contracts I have. Now I don't think they are profitable any more.
Very bullish into this last hour. Feh. It's all Raimo's fault.
VeroBarbara
I see bullish haramis on every index here going into the close. Shouldn't we bears be a little nervous here?
I am in KBH, too, and I wish I could see the future on that one. MACD and stoc are both down but in this market, that could mean everything or nothing.
I let my profits dissolve once and I don't want to do that again.
So to answer your question, I have no idea. :-) I think I'm done with it as of 3:58 today.
I am sorry.....but it is okay, blame me...
:')
I saw it as bounce off a sym triangle.
Haramis don't bother me much. I'm a little surprised by the strength that developed mid-day, but there's still an hour left. Plus, after 2 strong down days, i'm not totally shocked to see an up day in there. Where it leads is much more important to me.
VeroBarbara
Thanks for any feedback.
VeroBarbara
thanks on KBH. I'm thinking of taking 1/2 off let the other half run. BTW great call on TSL. I've been watching for weeks, jumped in early this mornig :)