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The Stock Market today

The good news is that the Dow climbed 338 points today. The bad news is that it fell 466 points for a net loss of 128 points. The drop was inevitable, and the rise was probably a result of the Fed rate cut of 75 basis points

I didn't do too badly. My trading portfolio, thanks to the presence of short ETFs, closed up .1%. That's not much, but considering that all of the major indices were down it's not bad either. It might have been slightly better if I had resisted the urge to buy a couple of stocks. (In a market like this it should have been harder to have the urge than to resist it.)  I purchased HANS, a beverage stock, and AUY, a gold stock. It would have been only slightly better though. AUY was up, and the net decline after buying them was just 22 cents.

I have been doing pretty well trading options. Every day the Dow is up but starting to decline I buy a DIA put and sell it for a profit when the market is down again. This strategy has allowed me to have a winning streak of 4 consecutive successful options trades in 2008. I am still in the hole and closer to the maximum net loss I'm going to allow myself than I am comfortable with. That's why I am being cautious. I could have made a killing today if I had hung onto my last option trade longer, but I'm not going to look back. I have found a discipline that I am comfortable with that gives me moderate success. Until I get out of the red in options trading I'm going to stick to it.