Tuesday, January 09, 2007

Another selloff test

Big market sell off occurring as I type this.

Read Full Post.....

Throughout december, the bears have tried to take the market down, only to be met in force by a horde of "buy the dippers." I also wrote about an impending market top, but it was a bit premature to call a top back in Dec/06.
Today, all the big names are going down once again - led by RIMM, AAPL, ICE, GOOG (though I see BIDU trying to rally - might be a good short candidate). Will the bears be able to finally overcome all those buy the dippers? I am doing my own "probe" to find out.
Bought RIMM Feb135 puts @5.70.
Closed out my HANS position @35.26.
Other than the puts, I am in mostly cash, awaiting for some confirmation from the market.
And in a selloff like this, I know that I should be jumping on some ER2 shorts, but I just don't feel I have the mental alertness and focus for that just yet. Still need to practice some more ER2 paper trades before I jump back in for real.

No comments: