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Wild ride: Where is the next stop?

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The market as represented by SPY in my posts bounced from its resistance level at $120. Expected move although I was quite hoping for the end of this mess and that stronger economic data from the US companies would help the market break through and go a bit higher. Well, it didn’t happen and the market gapped down 2% at opening. At this time it is down 4% and it seems we are heading lower in upcoming days.

This gap erased all my long call gains I had on SPY, unfortunately. My stop loss kicked me out break even and I reversed my trade the very first thing in the morning and bought SPY puts. What are my expectations now? My plan for this trade is that SPY will go all the way down to re-test its previous low at $112 level. At that point I will close my current puts position and wait what would happen next. If the SPY breaks down, I’ll buy puts back expecting further ride down to 100 level. If it doesn’t break I will wait aside for the next move.

Well, see you at $112 SPY level!

4 responses to “Wild ride: Where is the next stop?”

  1. Alice says:

    amazing things here. I like your investment strategy! I am very satisfied to see your post. Thanks so much and i am having a look forward to contact you. Will you please drop me a mail?

  2. Jersey says:

    Great blog about investing!

  3. Anre says:

    I think the market is recovering and heading up to 1200.

  4. Jim says:

    Of course stock will waiver based on the press coverage. What I want to know is how the press will destroy the euro if one of the countries defaults. If it is real or not it is all in how the press wants to sell news.

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