Saturday, December 6, 2008
TRADE CALL: SPY $80 Dec CALLS (SZC LB)
Here is the second crazy call. SPY calls. Dec $80 calls (SZC LB). They closed friday @ $9.10 and definitely worth a shot.
TRADE CALL: LONG BIDU
Yes folks another crazy weekend call. Looking at some charts and I think this one might be worth a poke LONG. Does it work who knows but sure worth a shot monday. This one is wild so be prepared to swing with it with a stop loss. Close friday @ $109.
MARKETJEDI
MARKETJEDI
Working on the Blog
Working on the blog folks- So excuse me if somethings looks alittle different in the upcoming days. Also trying to incorporate a live chat on the blog so you can all have instant access to me.
Market on Obama comment
I just got an email about my comment about my Obama entry and was asked if I then believe we will turn bullish. I am saying this! S&P will test that 905 number that's 30 points higher which should correlate to a DOW 9000 number. I am very sure when we hit 9000 many fund managers will think the train is leaving and want to hop on board easily adding us a couple hundred points higher. One good thing to take away from friday isn't that the market ended higher but that it ended higher on the worst job numbers in 34 years, that says alot. Is sentiment changing here? yes or it could be that investors believe Obama's administration will be better for the markets and as such is pushing us higher. Folks I am just a guy with opinions, nothing is written in stone but we have to play it as it is in front of us at the time.
We also importantly broke out of a channel to the upside on the indexes but that doesn't mean we can't trade back into them, so I will be watching the action Monday and tuesday for confirmation on the break out.
S&P 905 baby, 905 is calling.
We also importantly broke out of a channel to the upside on the indexes but that doesn't mean we can't trade back into them, so I will be watching the action Monday and tuesday for confirmation on the break out.
S&P 905 baby, 905 is calling.
Obama and the Markets
Yesterday on CNBC I heard something very disturbing by a floor trader on the NYSE when they asked him about the rally that was happening in the markets. His answer was that they hope Obama's administration will be positive for the markets and people looks like they are going to buy into his inauguration. Well folks I dont think it can get much worse than the present administration but thinking that Obama will save your investments is like saying the burglar alarm system is going to save you from an armed gunman outside your home, it ain't going to happen. I am thinking if they are beginning to think like that, the market may actually run up into Obama's swearing in and then tank after a few weeks or months when they realize it was all false hope, which it already is.
How can you invest based on a new administration is beyond me. Just like this present administration has cut taxes, lessen regulation, which are two things the capitalists love as they say it stimulate grow, then why are we in this massive mess?? Answer that question for yourself. Lowering taxes don't help anyone! believe me it has been empirically proven. Ok and we lower taxes how are we going to pay for stuff that we need as a nation especially since we are throwing away Billions to the financial and auto industry, where are we going to get services from with less government revenues. Lowering taxes is just a politic sound bite because it sounds good to get votes but it is a proven failure. Norway is one of the top 5 places to live in the World and they have a tax rate of 50%, yes 50%. Wow that's high right oh yes but guess what, they can provide every single service for their citizens. School is free even university, women get one year off paid after pregnancy, all operations are free including medicine. Now wouldn't you pay 50% taxes if you knew all your 3 kids would have college education and your health care paid for???
Well let's hope we get an Obama rally so we can short the heck out of it down to DOW 5000.
MARKETJEDI
How can you invest based on a new administration is beyond me. Just like this present administration has cut taxes, lessen regulation, which are two things the capitalists love as they say it stimulate grow, then why are we in this massive mess?? Answer that question for yourself. Lowering taxes don't help anyone! believe me it has been empirically proven. Ok and we lower taxes how are we going to pay for stuff that we need as a nation especially since we are throwing away Billions to the financial and auto industry, where are we going to get services from with less government revenues. Lowering taxes is just a politic sound bite because it sounds good to get votes but it is a proven failure. Norway is one of the top 5 places to live in the World and they have a tax rate of 50%, yes 50%. Wow that's high right oh yes but guess what, they can provide every single service for their citizens. School is free even university, women get one year off paid after pregnancy, all operations are free including medicine. Now wouldn't you pay 50% taxes if you knew all your 3 kids would have college education and your health care paid for???
Well let's hope we get an Obama rally so we can short the heck out of it down to DOW 5000.
MARKETJEDI
Rules of Trading
I get a few emails of people asking to add to position and asking where plays should go. Well folks I know the blog has an excellent win rate but that doesn't mean I wont have losers (I hope not :) ). These are some rules to follow as an investor.
RULES:
1- Don't hope your position gets profitable. You go into investing with due diligence and only enter with high probability of it working.
2-NEVER add to a position. There will be many many more.
3-NEVER take a big loss. (my greatest weakness)
4-Only trade small so you don't become emotional in any investment or trade.
5-Take small losses and move on. Try to definite risk before investing or trading. The main reason I tell people to trade options.
6-Winning trades will 90% work right away because you followed RULE #1.
7-Never, never get greedy. Take you profits and run. I often have people tell me oh your option play you only took 50% profit but it went to 100%, they never seem to mention when it went to a loser :) if they stayed in. When you go into a trade or investment you look for a target of profitability, if it is hit you get out and don't look back, you made your money.
8-Patience is the key to being a trader or investor. Only wait for great opportunities.
9- My greatest secret in trading. Trading is NOT random. Things run in a cycle and the way to be successful is to find the pattern of the cycles.
RULES:
1- Don't hope your position gets profitable. You go into investing with due diligence and only enter with high probability of it working.
2-NEVER add to a position. There will be many many more.
3-NEVER take a big loss. (my greatest weakness)
4-Only trade small so you don't become emotional in any investment or trade.
5-Take small losses and move on. Try to definite risk before investing or trading. The main reason I tell people to trade options.
6-Winning trades will 90% work right away because you followed RULE #1.
7-Never, never get greedy. Take you profits and run. I often have people tell me oh your option play you only took 50% profit but it went to 100%, they never seem to mention when it went to a loser :) if they stayed in. When you go into a trade or investment you look for a target of profitability, if it is hit you get out and don't look back, you made your money.
8-Patience is the key to being a trader or investor. Only wait for great opportunities.
9- My greatest secret in trading. Trading is NOT random. Things run in a cycle and the way to be successful is to find the pattern of the cycles.
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