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Financial news I consider important, with my opinion, which is worth as much as you paid for it.
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Monday, May 12, 2014

First hit, right on the Chin, whats next?

Today was one hell of a rally.  Needless to say, my buying spree on Friday should have been delayed to today.
SQQQ strike June 21st, 56 call, shoot for 3.90 an option, buy at the open, 10
That position took a 50% NOSEDIVE IN ONE DAY!
Yikes! Hind sight I should have done 1/2 Friday 1/2 today, buying all position on a whim is never good.

But even with that, I am still optimistic for a market decline this week, and the weeks ahead.

The Volatility Index took a nosedive today, and what goes down usually goes up.  VIX going up means market volatility which is down.

Today the headlines reminded me of back in 2008-2009, shouting at the rooftops to encourage stock owners that all is well, just before the left hook comes.

Then again, we could rally for weeks ahead, how do I know?
If I had tons of $$$ to risk, I'd be doubling down today.
Instead I nibbled, CALL (SQQQ) PROSHARES TR SEP 20 14 $55 at 5.10 an option. (2).
With such a drop today, I couldn't double down, but I did add with a farther expiration.
If I had real strength, I would have bought 1 week from this Friday much cheaper and many more shares.

Good Luck!

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