Monday, May 2, 2011

Monday: start of a correction

Before the market opened on Monday, news was spreading that Osama Bin Laden had been killed by US Forces. This caused the indices to gap up at the open, a gap that soon got faded. As a result, most indices are now printing bearish candles on the daily charts, esp. NASDAQ and the Russell 2000. This means we might get some more downside this week.

Commodities sold off, but the hardest hit was for silver. Down 6% at the open, it managed to erase some of the losses, but after the morning rally price started to reverse and silver ended the day -8.6%.

I covered BIDU and SINA in pre-market, not having a good feeling about this. Very small gain here.
I sold the ZSL-calls for a nice profit, but could have gotten more out of it if I held untill the close. And there's probably more downside for silver to come.
I also covered 1/4 of my position in the VIX-calls.

I made a small long trade in YM-futures (mini-Dow) for a quick little gain. Covered too soon, before my target was reached. Got in 12760 after the midday bounce on support and covered 12764 and 12765. Target was 12770 but price even got over 12780.

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