Wednesday, October 29, 2008

Another Dramatic Close

I didn't trade yesterday but I did on Monday and the similarities were evident. All my profits were late in the day on Monday and the same thing happened today. I was riding some UYM and SSO until the tape started acting weird and I took down some SDS. I was challenged all day, continually getting stopped out until the levy broke again. My last post shows the day chart of the SPX and I wasn't the only one that was left in wonderment. I'm getting used to the market getting annihalated on a regular basis but SDS just exploded. See the chart. I wasn't aware of anything that caused the decline until it was reported that GE came out with some soft comments about the future. At last check it was being denied as old news by GE. That may be, but it so clearly telegraphs the innate fragility of this market. I sold my SDS at the close as I am a committed renter in this market. Nothing gets taken home anymore. Gyrations are to severe and even the market doesn't know wtf it wants to do.

All in all, if you "take out" the close as CNBC likes to take out the "down days", the market was just keen and swell today.

Friday is month end, so anything can happem. One day at a time.

About Me

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I am a former hedge fund manager, broker and capital markets dude who now trades for his own account. I love what I do. I will try to post some stocks and an occasional chart that looks attractive for entry.I will also try to point out the idiocy of conventional wisdom and the lack of value added by the mainstream financial media. These postings should not be viewed as recommendations.