Am I missing something here???

Discussion in 'Trading' started by S2007S, Dec 1, 2006.

  1. S2007S


    1. The National Association of Purchasing Management-Chicago business barometer fell to 49.9 from 53.5 in October.

    2. The ISM index fell to 49.5% in November from 51.2% in October

    3. Private residential construction spending fell by 1.9% in October after dropping 1.4% in September, the latest evidence the US housing market has pulled back.

    4. Orders for US durable goods declined by the most in more than six years and consumer confidence unexpectedly fell. Durable goods orders to US factories plunged in October by 8.3 percent, the largest amount in more than six years.
  2. well you could add Gold is on the rise.
    The dollar is tanking.

    But then you have to ask yourself, with bonds so low, and real estate dropping where can I put my money and get better than a 4.5 percent return.

    The market is the answer. Especially since there are many dividend stocks paying more than bonds.
  3. well you need to call GS and ask them when they are going to let this thing fall.......why do you think they make so much money....b/c they always enter risk-free trades---unlike us.

    Hey hg.....what strike options, how many, at what price...dia...right.......why not spy, or qqqq`s besides tech seems weak after the manufacturing report? Maybe i will get some longs going here.....or so i can see your brilliant mind at work:)
  4. Spy doesn't move as much as dia, and i knew the q's weren't going to finish the day with a hammer like the dia.

    I'm very risk averse so I only bought 5 dec 121 call for 1.15. That's why I'm not worried one way or the other. I very rarely invest in options. The market direction is difficult enough to figure out without adding a time limit to the mix, but every so often I can't resist. The timing at least seemed good at the time.

    I still have 6 position trades open, and 4 swing trades all long. I closed my shorts on the 150 point down day this week for a nice profit. Even then I only had 3 shorts going and 11 longs.
  5. hels02


    Gawd, don't talk about gold... I sold my gg at $30.60 yesterday. If I waited til this morning, I'd have made another dollar a share. I hate when I do that. Other than that, wow, I made a lot of $$ today on EFUT. I'm still stunned at my 1 day 20% gain (that's a lot for me on one stock in one day).
  6. how liquid are the dia`s......i think top 3 are qqqq, spy, and then the i-shares russell 2000----can you think of any other indexes that areliquid and move a lot and might be worth looking at for market making activities......anything with like a .25-.30 daily spread on option prices due to volatility? on the lookout for some more prospects to diversify with my recent cash influx....
  7. The dia's are fairly liquid. The bid/ask spread pretty much stays at the new standard of .05. There were about 3700 contracts sold that day when I purchased and it ended the day at over 4300.

    If you want to play the overall market long or short take a look at the following etfs.

    If you want to short on an equal percentage basis

    Short QQQ ProShares Inverse of the NASDAQ-100 Index PSQ
    Short S&P500 ProShares Inverse of the S&P 500 Index SH
    Short MidCap400 ProShares Inverse of the S&P MidCap 400 Index MYY
    Short Dow30 ProShares Inverse of the Dow Jones Industrial Average DOG

    If you want to double the increases in the index long

    Ultra QQQ ProShares Double the NASDAQ-100 Index QLD
    Ultra S&P500 ProShares Double the S&P 500 Index SSO
    Ultra MidCap400 ProShares Double the S&P MidCap 400 Index MVV
    Ultra Dow30 ProShares Double the Dow Jones Industrial Average DDM

    If you want to double the short position in the index

    mzz ultra short midcap 400
    qid ultra short qqq's
    sds ultra short s&P

    Check them out.
  8. GG reminds me of my luckiest trade this year. I purchased a thousand shares of GLG Glamis Gold in mid august in the 38.00 and change range. GG bought them about a week later. The buyout price if I recall was supposed to be over 50 but it included stock. I sold for a little over 46.00. It's definitely fun to be lucky.
  9. Tums


    smoke screens for a long term bull market
  10. Yes, you are missing something.

    You should look at how the corporations and the money managers are reacting.

    Major corporations appears to be trimming expenses now in everyway. There is one hedge fund starting to issue bonds with many others considering it.
    #10     Dec 2, 2006