Wednesday, May 4, 2011


Indices sold off in the morning and managed to rally near the close, limitting the damage. The only exception was the Dow, which hovered around the previous close all day long, thus forming a doji on the daily chart.

Biggest news was probably the continuous sell off silver underwent. Gold and oil also corrected further.
The volume in silver and all it's derivatives is immense. These volumes are normally only seen at the beginning and the end of a trend. This doesn't mean the rally in silver is over, but one should definitely be carefull with long positions or any position all together, considering the enormous volatility now seen.

I closed the remaining VIX-calls for a nice gain. I regretted I sold my ZSL-calls yesterday, and maybe buying the ETF itself was even more interesting (I bought the June-calls, not the May-calls).

I nibbled some AGQ-shares when I noticed a rangebound move. Although I made a small gain, it felt more like gambling and I won't get involved again, as long as volatility won't ease.

I made several trades in YM, all shorts, but with mixed results. Overall a small loss, but some lessons learned (I which I had more time to get more into detail, maybe later).

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