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Thursday, February 12, 2009

Amazing volatility, intra-day

The Day started with futures down and markets opening down and the fell hard , then tech started rising, I had aapl and qqqq puts which I thought might make me a lot but aapl turned green within the first 30 mins and started running away, as soon as it came back down I got rid of the puts and then qqqq puts for a small gain.
Then looking at the strength I got some aapl calls.
A trader has to be prepared to turn on a dime , I got rewarded for my trade as appl closed strong.
I also got some GLD as GOLD has clearly broken out.After hours its down but GOLD seems to be running away.
My opinion is that the markets will not run away now and will test the support at 800.
But todays volume was higher than yesterdays at least on the stocks and ETFs I follow.
Overall it looks like the markets do have some strength and can more up a bit , but the resistance is strong.
I wish it was as simple as up or down but its not , I would buy the strong stocks and short the weak ones, meaning buy AAPL short RIMM , buy GLD short USO etc.
USO is funny though, did not fall much compared to Crude oil, but the trend is down. I would short with a very tight stop . Of course when I say say long or buy I usually buy calls and short would be buying puts for me.
Of course for every trade one has to wait for a good entry point .
I am fed up the daily volatility as I like to keep a trade for at least a few days. But for many traders this is a good time if they are nimble.
On crude I would be very careful shorting , as geo-political events can change the picture. SO small trades and tight stops.

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