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5min downward sloping channel, it is bullish...
2bit
Da NM.
What ur saying is a hedging strategy for buying stocks. But as u pointed out most people do uncovered options. And selling deep in the money options to reduce Delta loss. But still, selling Feb45 puts when q trading at 41, max gain is limited to the premium, but buying Feb41 calls, the max gain is unlimited.
da 2bit
Da Neutral Man,
Me not concur with da sold puts strategy.
Take yesterday for ex. qqqq @ 42
u think it is going up
Sold Feb42 puts - 1.75 to today 0.5 ,, gain of 1.25
Long Feb42 calls - 1.5 to today 3.5 ,, gain of 2.0
Plus all u get is 1.75 selling puts but the gain for in the money calls is theorectically unlimited...
me missing something in ur plan??
da 2bit
NM
looks like da bull flag forming in 2 min chart for oex
da 2bit
Gleno,
If u've traded futures, after a strong trend day, u normally close out ur position 15 minutes after the market closes or close it in globlex. Today right after market close sp500 futures still reflected a further gain of 4-6 points, such as in qqqq AH but futures are traded 24 hours, right now at time of writing it is negative 0.6. Ur smart to close out your positions.
2bit
Be careful Folks.
U don't get da 300 DOW points rise in da bear market...it's only a mirage...a huge short covering....people will sell it when they get to their price level....more likely another 300 points down soon...
da 2bit
Oman,
We might lose da great contrarian indicator starting today...
the Gleno indicator...lol
2bit
Gleno,
I would go for day trading don't sit overnight...I covered this morning too ...
2bit
ok u da man,
I got to close out da puts this morn...if u think the market is going to go up why not buy da calls instead of selling da puts...
da 2bit
Gleno,
A 75bps cut instills fear into the market, my take is it will go lower irrespective but will soon see...
2bit
Be ..Follow da 5 rules u posted...
da 2bit
Hey NM,
I just took a peak at da Toronto market which is commodities oil and metal based. Da boyz are bringing it down to -600 now and da DOW will normally at least 20% more than that...it won't be pretty tomorrow.....
da 2bit
Based on the futures now, the DOW will be down 600 points in the first 5 min tomorrow.....
2bit
Rain,
Teaparty's blog had a very interesting OEX chart which shows the last round (when the bubble bursted) when Fed cut rates
the market continueed to fall. Only when the Fed finally increased rates then the market realised that the economy was recovering the market rallied. A rally will be temporary for any Fed action...the market has to do what it has to do...again, only when the Fed stops rate cut or increases rates will any rally be sustainable.....
2bit
No, normally I don't care, but with this magnitude, it is going to get worse. World financial market affected by sublime, the street does not believe in Bush's package, George Soros mouthing off this is the worst recession since WWII, at time of writing, TSE down 550, Footsie 200, DAX 500...and on and on...the Fed's rate cut will be sold off....
da 2bit
Dow 11,000 by Friday...any takers?
da 2bit
DOW future down 300, it is going to be a black Tuesday, the Fed's action is too little too late. Chinese banks are affected by subprime....a global sell off....
2bit
Gleno,
MACD has to cross to the upside, right now it is short on rallies until DOW 11,100...
2bit
Are we there yet? Non, monsieur.
da da 2bit
http://stockcharts.com/c-sc/sc?s=$OEX:$CPC&p=D&b=5&g=0&i=t89608907025&r=6930
Once again, da-pivot works, 644 became resistance, did not matter what da-B2-Bomber-Ben said, it was going down. Da fact that B2-Bomber-Ben did not offer any solution, caused da market to trip. This market is a day trader's market. IBM after hours up 5 points. Looking at da technicals tonight, Ben screwed up big time for a rally today and it is not going to turn any time soon. If it gaps up tomorrow because of IBM, there will be another wave of selling into strength just like a few days ago.
2bit
NM,
What do you say da-boyz will run it up after IBM earnings tonight and run it down again till OEX 620ish..I see blood everywhere...
da 2bit
Rain,
Ben the B2 Bomber now called, said cutting rates theorectically would help. As soon as the academic word came out market sold off. I followed da-boyz to Put OEX and finished da-day trading and is going out for da-walk as Neutral Man would say it, can't fight da-boyz.
da 2bit
NM, U da-Man, do concur with da-diversification BS, ur do-one-thing-right-and-good is me strategy too. Studies found da oex and da russell 2000 options with da highest rewards. Good luck to your constant battles with da-boyz.
da 2bit
Foot, I like the SUV because it is easier to get in for these old bones of mine. But I also like lower cars for they hug the road and I can feel young again. I need da Neutral-Man to guide me through so that I can go for my favorite, one day ...the Porche Cayman....
2bit
http://www.porsche.com/cayman/assets/images/splash-image.jpg
Gleno
They call today turtlesoup+1 buy, but is not accurate. My wave5 of target 637 will soon be complete (today's low 639) and the next wave is corrective abc up. If you want to be conservative before you buy, wait till the little curly crosses to the up side and is any day now....
2bit
http://stockcharts.com/c-sc/sc?s=$OEX:$CPC&p=D&yr=0&mn=6&dy=0&i=t83890508923&r=7717
Oman,
To be honest, less volume (as long as it is liquid) means bigger volatility and you need that in options. I tried trading DIA options, it moves a nicket every 30 minutes, it drives me nuts. I need somehting like OEX options which move 50c a second to keep me awake.
2bit
Foot, love to get one, if only they make a convertible out of it....
2bit
NM,
If you don't mind me asking...why do you trade qqqq options? You seem to be very good at options. QQQQ options are for crumb change. Go for OEX or Russell 2000 options or NDX options if you want to make it big.
2bit
Foot, I am not worried. If you look at Ben, what do you see?
I see a very indecisive person. If he is a trader, he would watch the market go up and come down without doing a trade. Kind of a helpless kid who needs big daddy. Greenspan would have done it, but Ben, no way....
I sleep very well, especially after today
2c
Foot, paper bag works well, wave 5 started in earnest....DOW 12,000
2bit
Hang Seng down more than 600 points and the banks sold out to Korean, Middle East, Janpan and Singapore. As noted C cut dividend and a 18Bil loss.....
2bit
Hang Seng
anybody knows what happens over there, down almost 400 as time of writing...
2bit
Hey Foot,
That's what you get when you want free 2 cents service. You are lucky I did not use toilet paper...LOL
2bit
Gleno,
No, they are governed by pivot numbers, if you can discard all charts and start trading by using pivots, it will be all clear...
2bit
gleno,
just 2 5-wave comparisons, Oct11-27Nov and 11Dec-22Jan, I did not show the in between abc corrective waves. Where did you see 9waves? In any case the first pattern was highly profitable for me. You do know, ew works when it works...LOL
have a great day
2bit
Foot, I managed to post image of ewave on my blog
http://www.2cents-oex.blogspot.com/
just click on the image to enlarge
I find it easier to upload photo there, that is what I am trading on....
2bit
if you show me that is, I can't type today
2bit
Hey I am learning too. I just go by past patterns. I do not use any software for charting. I trade OEX options only. I hand calculate everything with the help of Excel from time to time. If you should me how to post a scan image. I can show you my humble 2cents. Again, you do know that Ewave only works if it works...
2bit
sorry should have typed below 1370 for spx...
2bit
Gleno and Foot
My ewave calculation. To cut a story short. 5 waves completed from 11Oct07 to 27Nov07 for a drop of 71 OEX points followed by corrective abc waves. The next set of 5 waves started on Dec11...wave4 completed on Jan10 and we are in wave 5 and it is expected to drop from 669 for 32 OEX points to 637 which is spx 1370 and it will take 7-8 days and you will be looking at SPX 1370 or DOW 12000 approx. by Jan22. This is a drop of approx 74 OEX points from 711 of Dec11 and 32 points from 669 of Jan10. Volatility is going back up, to expect any bounce to higher ground is a very remote dream at the moment.
2bit