I enjoyed reading many of the blogs and articles in the business world on Saturday. It seems most were in cash or knew it was coming yet not one had an article recommending or talking about a big downturn coming. If they did talk about a downturn it seemed most of them ended with a question mark. I don’t want to point out anyone because many of the blogs are sites I enjoy but the follow ups of Friday are almost laughable. One site said “good thing I was in cash” but never mentioned he was in cash at any point before. He said he was going to trade light going into expirations but anyone who knows expiration knows to trade carefully that day. I am not bragging because I took a big hit in Optionsxpress on Friday but look at my past post from the 18th and see I recommended puts and selling calls on the overall market. I also recommended selling stocks like Elan that took a big hit. I am wrong all the time but I post everything and hopefully I am wright more than wrong. Finally nobody wants to make a call for Monday. Up or Down? I don’t recommend anyone trade on my analyzation or feelings as they are for entertainment purposes only. Only I trade on my thoughts. I will put up a predictions for Monday. Down in the morning with a rally in the afternoon ending in a slightly down day. I do feel we are going to have an overall good week. There are a ton of great buys out there right now. I would be buying Apple, Celgene, Phizer, Sandisk, Broadcom, Tradestation, ISE, Chicago Merc. I would be scared to touch Google as it is going to very volatile. You could buy the worlds most expensive strangle. Leave Elan, Sirius, all airlines, and automotive alone or short if you must. Enjoy the week. It should be fun.
COMMENTS
January 22, 2006 10:29 pm
Shane
I wanted to make sure this was posted as the link from blogger wasn’t working. Mike from Trader Mike sent this and it is a good comment as deserves to be posted. He is very techinically based and you need to go read his blog at TraderMike.net. I did not in anyway mean to “call him out” and I in no way meant it as an article on just him. Here is his comment.
“As for myself, I was in cash because I always take the day off for expiration. Been writing that on my blog every expiration day for over two years now. The reaon I take expiration off is b/c over time I found that the ususal pinning action was “over-powering” the vast majority of setups I saw.
I don’t know how many traders would make ANY prediction much less predict a big down day. One would need a serious crystal ball to make such a call. Personally, I try not to make predictions. I just try to react to what’s moving. My goal is to make money not to make correct predictions.
What I DO try to do is read the technical landscape to figure out what I think is the most probable action. But I never marry myself to my analysis. “