Hold The Champagne: Part Two

Apologies for the late start but just as I was writing my opener David Tepper popped up on CNBC. I will have more later on what I thought about his comments. Yesterday, in the late morning I thought the market would stabilize and was debating how aggressively to cover some shorts. Ultimately, I was not that aggressive as I only wrote covered puts.

Normally, tops are processes and the market does not fall out of bed all at once. But given the way the market climbed relentlessly on the way up I thought that there was a better than average chance that the downside might look similar and didn't want to get too cute. It now appears that we are looking at more of a process.

I still believe we are in a corrective period that should last until late next week at best and until late February at worst. I will give the market some room here but might look to expand my shorts at the end of the day. Sentiment is still overly bullish and the post expiration period in January has not been kind to markets.

9 comments:

Anonymous said...

Covered SFI @ 8.08, short from 7.89 (-4%)

Long HDY @ 5.03

Long LPHI @ 11.85

OL DAWGB

Anonymous said...

Long BRN @ 5.46

Ol DAWG

Anonymous said...

Short BLTI @ 3.24

OL DAWG

Anonymous said...

Dawg you trade on margin?

Short plcm

Anonymous said...

of course how else can i short

put an entry price on trade please

Anonymous said...

sorry, i'm newbie to shorting. Also never traded options yet.

short plcm @ 45.8 first time short!!

hoping to get down to 44.

like I said ..newbie.

Anonymous said...

That's a great entry to short. However, PLCM does not have an intraday chart that is conducive to falling down. My guess is that it will stabilize and find a floor at 45 or high 44's. And if it closes with that support, it will go higher on MOnday as long as the market is not tanking.

OL DAWG

(first job out of college was a daytrader for a firm that was bought out by Etrade. Then 2 years institutional equity sales and 1 year equity research)

Anonymous said...

plcm filled @ 43.9

thanks dawg

Anonymous said...

Nice trade Anon. I was wrong!