Good morning all, as I write this post earlier than usual, the premarket action is pointing down.
Watch for the first 30 minutes action. If the market quickly fall below more than 100 points within that timeframe, it could close more than 100 points down today. If it doesn't, it will try to close the morning gap during the day. I am expecting some kind of pullback this week. Our targets for SPY is 101.25 and QQQQ is 39.95.
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Hi GCL
ReplyDelete1. what is the market ticker u look at for 100 points drop
2. i use usually stockcharts or yahoo to look at grafs, can u recommend on a better free realtime graf usuage
I use Ameritrade -- Stategy Desk -- which is free to their accounts. Probably, most of others have something similar.
ReplyDeleteThe specialists are playing hard balls the first 30 minutes action. They brought prices up and down several times. Is it breaking down or trying to close the morning gaps?
ReplyDeleteshulin, I use Interactive Brokers. They have low commissions and fast executions. They have 3 different platforms to trade with.
1. Java Trading platform.
2. Simple Web platform.
3. Mobile platform.
I like the Mobile platform. You can execute fast on it. It contains only text and no images.
Sometimes when you don't have internet connection on the go or travel, you can still access via the phone and trade.
If it ever try to close the gap, watch it how it closes it. It could close the morning gap and then it could reverse down or it could go higher.
ReplyDeleteIf it reverses down, the market would have make lower high and lower low from Friday. Good sign for the bears.
If it go higher and close positive, the market could go much higher.
hi GCL
ReplyDeleteon what symbol u look at when u say "if the market will drop 100 points"
shulin, I was watching the premarket action this morning.
ReplyDeleteIf the market opens around 60 to 80 points down and it falls more than 100 points by 10:00 AM, the market will go down even more. The it will close more than 100 points down.
If the market never fall more than 100 points by 10:00 AM, then it will try to close the morning gap. For example, like today action.
Now we are at the critical point. It did close the morning gap. The question is 'will it reverse back down or go higher'.
ReplyDeleteIt is all depends on the specialists. They had the morning meeting and discuss the action for today.
Gcl, what symbol u look at? is it DJIA, Nasdaq, s&p500
ReplyDeleteI watched CNBC in the morning before I go to work. If you missed it, you can go to cnbc.com. It had all the action news from the show.
ReplyDeleteshulin: yes he was referring to the DJIA as the 'market'.
ReplyDeleteI was watching the early morning show on CNBC. There was a reporter saying that the government should not intervene with any companies and stimulus plans. I kinda agree with him. Eventually the market will heal itself given the timeframe. The fortunes and bankrupcies are make through the economy cycle.
ReplyDeleteImagine that if the government never intervene with the economy or companies. You can buy big names stock cheaper than it is now. Then after 10 years, you will make fortune.
We have past the more than halfway mark today and the volume is still light. I will take the volume of trading the last couple weeks and next couple weeks as normal trading. We are entering the seasonal trading with low volume. Lots of investors are trying to take the last vacation before the autumn hit.
ReplyDeleteUsually the tape gets pumped on low volume.
ReplyDeletelook at last year thanksgiving and xmas. up on low volume, no?
ReplyDeleteWhat a short squeeze. The weak shorts got taken out not too long ago.
ReplyDeleteFor shorts, don't set a stop loss limit at your brokerage. They will see it and they will try everything to trigger it.
Set a mental stop loss limit so they won't know it.
Just got back from lunch. Not surprised the squeeze happened at all.
ReplyDeleteShould have covered this morning :(
ReplyDeleteWatch it drop this afternoon. It could drop down to where its opened today.
ReplyDeletebull too strong.. 1049 retest.. 1056 next? :(
ReplyDeleteIt is not the bulls problem. It is the weak bears problem. Every times they shorted, they covered higher. Then they tried to short it again. They covered higher again.
ReplyDeleteStopped out. Will look into reopening short position later.
ReplyDeleteThe last minute dropped was little to late.
ReplyDeleteohh boy, my spy puts not looking good, if we dont close -ve this week, i think next week will be big down...
ReplyDeleteGCL do you have any timeline for spy to hit 101 area
I'm looking at reopening my position on Thursday or Friday.
ReplyDeleteI have longer term short positions with SPY June / December 2010 Leap Puts at the 80 and 75 strikes. I think we'll see another sell off sometime soon. I'm just not sure when.
stm, you bought SPY put at 101 in December.
ReplyDeleteYou could open a sell of SPY put at 101 September.
They are still worth 0.14. At least you will get some premiums back for the loss of December put.
If SPY hit 101 by Friday, your December put will be in the money and making profit, but September put is worthless.
My advice about options is not to buy call or put options. You have 2 out of 3 ways to lose money.
ReplyDeleteYou rather sell a call or put option. Time will be on your side.
thanks GCL, yes i have dec 101 puts, i will try to do as you suggested in the first hour of trading tomorrow. my account does not allow me to trade after hours....
ReplyDeletestm, if you want to take a risk, instead of open a sell position at 101, try open at 102. They are selling at 0.23 each.
ReplyDeleteAfter this week option expiration, do this for October, then later November. Open a sell position at 99 or 100. This is one of the option strategy to use if market goes against you for couple weeks.
ya, i never thought to collect premiums... good idea, thanks
ReplyDelete