I placed an order for XLE Mar '09 long 73 call and sell Sept '08 74 call. for 4.60
The correction we expected has happened. Are we at bottom? Not sure. But I placed the trade so everyone can see.
For those that do not know, this is called a diagonal spread.
Subscribe to:
Post Comments (Atom)
9 comments:
Dell,
I'm with you. I'm going to follow along and placed a trade myself, although I did a 74/75. I know you want about 1/3 for the intial short, what % do you want to get for each rollout?
Are you doing a diagonial on USO also?
Debbie
USO not yet
I try to collect 10% rolling out each month (buy back the short and sell the next month)
Dell,
How are you picking your entry point, are you using the channel watching for a bottom and signs of starting back up? I know you aren't a technical trader.
Debbie
I watch the news. I fade what the commentators are squaking.
Seriously, a typical correction is 20-30%. When a market gets overheated like we just had, it is due for a correction. When I have no idea. When it starts, you can gauge about 20% and then watch for how it reacts at that level. If it continues then it will be even lower, if it stalls and starts to look like going flat (some call this support) then I get in knowing full well this still does not mean the end of the correction, but at least it has better odds. Then you add a little Cramer et al (these guys make money enteertaining not trading and so you can do pretty well fading them) and this gives you a good feel you are right.
Hi Dell,
Kudlow said yesterday that the commodities are dead.
I remember one thing you told us in your class, when the talk on the street is that one particular stock or sector is done, it will explode in your face.
While nothing has been done to decrease the price of crude oil, it keeps on going lower. You know my deadline by now.
However, in September your theory should turn into reality. Nobody will see it coming, because "commodities are dead".
All we see right now is hedge funds getting out. Nothing fundamental.
If fundamentals change, then we have a different story on our hands. Till then keep your finger on the button.
The next 30-45 days should be really interesting to watch (and trade on the right side of the market).
What's happening with gold?
Gold is just following the same correction.
Once the dollar resumes the slide gold will be right back up there.
Dell,
I have been trying to get started in the stock market. I have been researching it for a while now. Any suggestions on where to put my money (with a broker or do it myself)? Do I have to trade on a frequent basis or can I let it ride per say for a while. I subscribe to a few stock newsletters and get ticker symbols all the time with explanations of their particular market situation, so I can have the ability to choose a great earning stock. Do you have any suggestions for me. I didn't know you where an investor too when I was in class. Good to know.
Thanks Tina
Tina,
We are here to help you along. I don't recommend any broker, I am a registered investment advisor so I recommend trades and ideas to trade.
This blog is a forum to discuss ideas. If you want anything specific, email me and we can go over what is important for you.
By the way welcome aboard.
I do not particularly like individual stocks. I like to trade sectors. Over the years analysts or news reports upset my trades when I traded individual stocks. So I trade baskets of stocks (ETF's).
I trade so that I do not need to watch the portfolio that much. I trade about once a month.
Sign up for the newsletter and watch what we do. This may or may not be your idea of trading, but it is one approach to the markets.
Post a Comment