Tuesday, September 21, 2010

Market Recap - Sep 21

The Dow were up 7 points to 10761 after rising as many as 80 points after the Fed statement.

I expected the market to go up after 2:15pm today and since no firm changes, which we already know, the market should come down. That is why in my intraday I said I will sell the SNDK and buy it back. However, I am stuck in the meeting and couldn't do it today. It is Ok. Everyday we have chance. Now what I concerned is the ATHR, how I can recover my loss today.. It went up crazy for almost 10%!!! Currently ATHR is below its 20,50 and 200MA. Very short term , the 7 days now is above its 14 days MA,, a warning signal. Option 1: dump and recover from other positions. Option 2: buy call do a straddle.. then a big transaction cost.

It broke my rules of 30% stop loss this time,, coz the unexpected huge up price is really out of my expectation after some Analyst upgrade this stock and set target price around 45.

I will keep close watch on this one and dump it if it gets worse.

I will look at SNDK tomorrow and ADBE too tomorrow. Not too bearish about the market but even in bullish market, there are still some stocks that I pick for short term PUT options. Basically, after today's red figures, ppl starts to concern and think of the market peak and turn over. I am flexible and will just adjust myself to the trend.. If it points to the north, I will go north.. If it changes, I change the same time. And I never try to guess if it is peaked or not,, because human brain are not programmed to compete with Super computers.

SNDK is a good short run, one day for 40% gross profit,, which is good to see and will keep it up.

No comments:

Post a Comment