I bought FAZ calls @ 9.10, willing to hold these for up to a 30% loss (on the option, which is nothing.)
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FAS/FAZ for New Week 4/27
- Thread starter scot.mcpherson
- Start date
faz hit almost $10 in the AH market. I am in on FAS at 7.28 in the morning AH market. looking at 7.40 right now at 9:39am.
Maybe. I plan on holding it down to at least 7.2. That'll only cost me $50. On the other hand, if it continues up, I sit in a very nice position.
I guess its my day trader psychology. By it when its really low, it might get lower, but if it goes up you have a higher margin than everyone else.
With the price where it is right now, I have some time to decide.
I guess its my day trader psychology. By it when its really low, it might get lower, but if it goes up you have a higher margin than everyone else.
With the price where it is right now, I have some time to decide.
I would be careful of FAZ here (My money is still on faz for the next month or so, but I'd be careful here). I'm not sure about the upside. The bear volume is still not convincing me yet. It's been 2 days in a row where the bear coulda made steaks out of the bull but they haven't. I still think the selloff will come after earnings. S&P wants to touch that 875 again.
anf for now FAS is still climbing, $7.65
Quote from scot.mcpherson:
Maybe. I plan on holding it down to at least 7.2. That'll only cost me $50. On the other hand, if it continues up, I sit in a very nice position.
I guess its my day trader psychology. By it when its really low, it might get lower, but if it goes up you have a higher margin than everyone else.
With the price where it is right now, I have some time to decide.
Exactly. We think differently.
Even though I could be doing just as you did, I don't.
Rather, I think like someone with a limited number of day trades, and wait a little more than you for pullbacks/confirmation, and stay with trends ina little longer time frame.
This is the chart that I use to determine direction.
Attachments
well I have a limited number of day trades as well which is why I also try to put myself only in the best positions like you, the the difference is only this:
I try to find the breakouts
you try to find the trends
I think both work can very well.
EDIT: And I also use the weekly charts, and also the 1 months and 3 months charts to try and predict whether the position I am looking at is likely to bounce or continue to fall. I don't use SMAs or WMAs other than what my brain and intuition feels like it is, and I look for the patterns of the highs and lows, and I also look to see how low the the current low is, and try to determine whether it's "low enough" to bounce to another new high in the next day or two, or whether its going to burn out fast and fall like FAS did last week. I feel that it was literally because the low, wasn't low enough.
Yes news has an effect, yes quarterly reports and tarp and all that yes fundamentals have an effect, but ultimately all those thing cause "blips" on the radar, unless you have continual bad news over and over continuing to push the trend bias downward, I think most prices are set by traders like you and I, and people see a low and they buy it from those who are fearful, and push it up until you get a high and then holders profit from it by selling to the fearful again who get to watch it fall again.
EDIT #2:
I should also add, I mean as far as how the market affects traders like you and I, not long term investors, that's a whole different ball game. I am talking about the short term 1-3 or maybe even 5 day holders.
I try to find the breakouts
you try to find the trends
I think both work can very well.
EDIT: And I also use the weekly charts, and also the 1 months and 3 months charts to try and predict whether the position I am looking at is likely to bounce or continue to fall. I don't use SMAs or WMAs other than what my brain and intuition feels like it is, and I look for the patterns of the highs and lows, and I also look to see how low the the current low is, and try to determine whether it's "low enough" to bounce to another new high in the next day or two, or whether its going to burn out fast and fall like FAS did last week. I feel that it was literally because the low, wasn't low enough.
Yes news has an effect, yes quarterly reports and tarp and all that yes fundamentals have an effect, but ultimately all those thing cause "blips" on the radar, unless you have continual bad news over and over continuing to push the trend bias downward, I think most prices are set by traders like you and I, and people see a low and they buy it from those who are fearful, and push it up until you get a high and then holders profit from it by selling to the fearful again who get to watch it fall again.
EDIT #2:
I should also add, I mean as far as how the market affects traders like you and I, not long term investors, that's a whole different ball game. I am talking about the short term 1-3 or maybe even 5 day holders.
Yep.
I just took a half size here in FAZ - 8.87.
TRIN is staying up around 1.5, even though VIX has been coming down to flat, after being way up at the open. Also, XLF shows no interest in turning positive right here.
If TRIN was moving towards 1.0, then I wouldn't do it, and look for a pullback to get into FAS.
I'll do like yesterday, and if we go up, get a higher high on my midterm chart, I'll add.
I just took a half size here in FAZ - 8.87.
TRIN is staying up around 1.5, even though VIX has been coming down to flat, after being way up at the open. Also, XLF shows no interest in turning positive right here.
If TRIN was moving towards 1.0, then I wouldn't do it, and look for a pullback to get into FAS.
I'll do like yesterday, and if we go up, get a higher high on my midterm chart, I'll add.
well I hopped off at 7.57