Thursday, October 16, 2014

Market Journal - Oct 16th 2014

Well, the market did have a mini crash today. 2 times. I had a blast today intraday trading. I also re-entered NUGT puts after exiting calls. I may be a little early here but I think Gold is about to re-establish its downtrend. I am not risking much money here. Always rule of thumb is not to risk 1-2 percent of overall capital.

Coming to the market. I think we are very close to some kind of low. We need to see what kind of bounce we are going to get out of it. I will be looking to enter some bullish positions today. Again size will be smaller due to high volatility. Among others, I am looking to go long Oil and also go long small cap stocks which had a good day yesterday. Similarly I am looking to short VIX - I havent decided whether do this via puts on VIX or VXX. I will decide during the trading day.

So bottom line is - things are still bearish - but we might be close to an interim bottom. A bounce back to the bottom of the channel at around 1940 SPX might happen - best case.

Best,
PM  

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