Emotionally, the market is in trouble. The way that the Fed has handled things (their communications strategy and not their policy) has investors at wits end. What was a bullish feeling going into the Holidays is now doom and gloom.Confidence is a fragile thing and the Fed crushed it. The trend is to sell any strength. So I got simple yesterday and this morning. I have sold almost all my calls. I have a few token APPL and PCP calls left as a placeholder more than anything else. I haven't hedged my long stock positions, but probably will if the market tries to rally.
I haven't been this negative about conditions in five years. Nothing has fundamentally changed since Monday, but the feeling that the Fed was competent has left the market. As a trader, this is a big deal. We may be headed for 1390 on the S&P, breaking the low established in November.
2 comments:
Come on BIG dog, this is a mere blip on the screen. When I was seeing my biz tanking in early 07 several on the MB pooh poohed me as being a perma-bear, which was furtherest from the truth. I was living out what was acutally happening in my life. Same way with your trades from Tuesday.
I'm telling you the corner has been turned and things are looking up. If things turn south again I will let you know, but as of now my business barometer is 'hammer down'.. so expect the rest of the world to catch up in a few months, you can prepare accordingly is you have a good keen eye..
It ain't as bad as it has been. (if that makes sense)
Thanks for the comment Denis. Sometimes "getting simple" forces me to remake decisions about which stocks in my portfolio will bounce back the best.
When you have to make these decisions, they often improve your overall performance.
I will "put the hammer down" as soon as I get a market signal.
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