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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