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%.
Swingtrades
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.
Daytrades
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.
Showing posts with label ZSL. Show all posts
Showing posts with label ZSL. Show all posts
Monday, May 2, 2011
Friday: The only way is up...
...or so it seems. Well, this shows us the power of the bulls. The markets keeps ripping higher, getting overbought at this point. But there will always be some kind of catalyst that triggers a correction/pullback. The question is, when will this happen and will it be a sideways correction (in time), or a real pullback?
One concern for the silver bulls: gold rallied higher on Friday, but silver actually went lower. That must be the first time silver is not leading gold. Also the reason why I bought some ZSL-calls and looking at the futures this Monday-morning, they're probably going to pay off nicely.
Swingtrades
Despite my words on Thursday (I'll wait for a pullback before buying stocks), I went long BIDU and SINA. Both stocks seemed to bounce on support.
Like stated above, I bought ZSL-calls and I also went long some VIX-calls. The VIX is near it's lowest point since June 2007. That doesn't mean it can't get any lower, but I expect at least a temporary bounce higher in the coming week.
Daytrades
I went long the E-mini futures in pre-market for a small gain. Raised my stop up aggessively at one point, which stopped me out. Of course my target was met afterwards. Next time I'll use 'set and forget'-orders and leave my computer for at least half an hour. That should work.
One other daytrade, SIMO. Long at 12.87 but we went down soon, thru my stop of 12.65. I pulled the buy-trigger way too fast on this one. It might be a good idea to stop daytrading for a while and focus more on futures and swingtrading.
One concern for the silver bulls: gold rallied higher on Friday, but silver actually went lower. That must be the first time silver is not leading gold. Also the reason why I bought some ZSL-calls and looking at the futures this Monday-morning, they're probably going to pay off nicely.
Swingtrades
Despite my words on Thursday (I'll wait for a pullback before buying stocks), I went long BIDU and SINA. Both stocks seemed to bounce on support.
Like stated above, I bought ZSL-calls and I also went long some VIX-calls. The VIX is near it's lowest point since June 2007. That doesn't mean it can't get any lower, but I expect at least a temporary bounce higher in the coming week.
Daytrades
I went long the E-mini futures in pre-market for a small gain. Raised my stop up aggessively at one point, which stopped me out. Of course my target was met afterwards. Next time I'll use 'set and forget'-orders and leave my computer for at least half an hour. That should work.
One other daytrade, SIMO. Long at 12.87 but we went down soon, thru my stop of 12.65. I pulled the buy-trigger way too fast on this one. It might be a good idea to stop daytrading for a while and focus more on futures and swingtrading.
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