First under no circumstance buy or short any individual stock going into a number. (unless you have insider info or know the MM)you'll be wrong and somehow end up a bagholder and married to the position
2nd if you are playing the toxic leveraged funds, prepare for dissopintment. Just short any pop on any of them into any gap up.
3rd-Prepare to be even more confused by the "leader" AAPL.It will figure a way to detach itself from overall markets. You can really trash the theory of "as goes AAPL, goes the market". I thought that was the case with GM, CSCO, GS, etc...
4- get more confused when you see a major weighted component like say IBM(the biggest weight for the DOW) go up or down and the futures don't respond to it the way they should. CAT is 2nd heaviest weight...
5-financials ridiculously overbought. Media will be pumping left and right before the numbers. Should all be sell on news but I'll be wrong.
I just thought of something and since it really is banks that lead this, where do you think stocks like say LEH, BSC, FRE, FNM, WAMU, CIT, etc would be today? What was their weights on index;s? Look where the market is today with all these "index leaders" gone. Financial index even higher now so maybe that whole diversification into index funds actually work?
I mean we could name 3000 stocks from tech bubble. They pumped crap like yhoo, SUNW, JDSU, DELL, MSFT, CSCO....you listen to these pundits like in AAPL and I can guarantee you they pumped all the other stocks. AAPL, GOOG, AMZN, what have you. Out of thousands of stocks that failed, these are invincible. so people short eh multibaggers and get squeezed higher, till they are margin called, then they come down. Ths is also when metals would never go anywhere, now they want you in that......this game don't change
Here is what I learned a long time ago. Don't play individual stocks. You may miss a double, triple, etc. In the end, you will hold a pink sheet stock. Then they can take all the losers, forget about them and put something new in the DOW or spx and all is forgotton. Kodak anyone? LEH, BSC, sub primers. Yeah they all ran too...
This was enough to convince me not to hold overnight. Thanks, you just saved me probably. Godspeed, take her out if she was a greedy money hungry shallow wife who left you cause of that. GL
okay, I;m out. I think your right. This doesn't gap up much overnight even when futures tank. Risk/reward not good. I'm sticking to non-decaying products
what I look at was the contango gap. It filed all day yesterday and today gave a continuation. I am worried on the push out in Januarys today. I am strictly playing an overnight gap up and dump. I'll take my chance. If gaps down, I eat it, simple as that
never get married to anything in this game especially leveraged etf's. As designed, ALL go to zero over time
which makes me very bullish on UVXY very short term. You could have bought yesterday near the close, went overnight and lost when you woke up. You had the chance to sell into the spke today(it was green). If you held after seeing $21's, thats your own fault. You buy now, you take the chance of the gap up and you dump-end of discussion. You hold longer than a day, you will lose 9/10 times
"After a 10% correction, Europe came around with their own QE sparking a 100 point overnight rally. New fiscal cliff plan causes a relief rally and "short covering" spurs 1.5% index jumps. Commodities sell off going into "cheap equities"- I'll be selling the gap up
thats your ticket out
no more hurricanes, no more geo-political uncertainty, okay?? I need to retire...
$150k portfolio in oct. 2007 went to $56k March 2009. In between have raked in dividends and sweated all the ups and downs. It's only at $109,000 cause the funds I'm in suck but the dividends made up the difference plus...I didn't think this market would get to 1100, 1200, 1300, or even 1400 and i just have a bad feeling after this election...
looks like you weree smart- I mean $31.50 yesterday to 30.50 ina crash. Plus every Friday marks an all time low
I'd like to make 40% on my puts
and like magic, the PPT team bumps it all up overnight! so this whole buy the dip, sell the rip thing works:)