A trading journal site following the in's and out's of the trading day through my eyes. Market sense and commentary. In no way should this be interpreted as a site for recommendations or stock picks. If you treat it as such, do so at your own risk and may God have mercy on your soul.
Tuesday, September 20, 2005
Making profit$
I started today still holding my Oct 39 Puts and the market gapped up fairly well against me. The Q's traded above the $39.50 range but seemed to waffle a bit around that region in anticipation of the Fed announcement. The RSI signaled to "cover" prior to the market close yesterday and the reversed to a "long". I didn't follow and hence was down some today as the market rallied in the direction the RSI(5) predicted. The system then triggered a sell signal around $39.51 and immediate "short" at the same price. I loaded up again on the Oct 39 Puts at $0.40 prior to the Fed announcement. The market whipsawed after hearing the 0.25 rate hike news but then decided to tank and the Q's dropped below $39.00. I got out and went fully to cash, selling the puts for $0.65. Nice profit. The RSI(5) signaled two winners today, of which I partially benefited. Currently the system reads "long", but I am hestitant to hold overnight right now. Better safe than sorry and I don't ALWAYS have to be in a trade.
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