Never said I did trade the news, but this is a very dangerous situation for the world and not to be taken so lightly as he did on the last page...or as you joke above... especially since his stated intention was to hold till Wednesday. I merely pointed out a perfect place to exit given his aims for the trade, and the fact that the nuclear problems had been upgraded to 6 on the danger scale (Chernobyl being 7). I was trying to help, and was right.
You sayin' you are out of the position*? Are we back to the good ol' times when only one part of the trade is posted? *My guess is, if we go up, you are still in, if we go down, you exited with profits...
One thing I have learned from years of trading and observing markets is that they always overreact. Moves triggered by natural disasters and the resulting, but seldom realized, fear of utter catastrophe ALWAYS overshoot reality. Remember, markets are driven by perception, not anything else. The Japanese disaster is a classic example of this fact happening right now. Anyone with the nerve to buy the sell-off in the S&P 500 has been rewarded handsomely over the last several days with a strong bounce back from the lows. The fear in Japan is focused on its nuclear power industry. The earthquake and the resulting tsunami damaged several plants causing radiation leaks. This is turn, has resulted in worldwide nuclear plant shut downs over safety concerns. As you can imagine, the closed nuclear plants has led to an extreme sell off in Uranium mining stocks. I believe this sell off is overreaching. First, the worldwide nuclear plant shutdowns are temporary, other alternative energy sources are simply not enough to sustain the infrastructure at this time. Secondly, as was explained in the first paragraph, markets always overreact and this overreaction creates great opportunities in the opposite direction. Watch the trend traders get turned into turtle soup......
Buy the FEAR, Sell the GREED <iframe title="YouTube video player" width="640" height="390" src="http://www.youtube.com/embed/GwWECSRX-bg" frameborder="0" allowfullscreen></iframe>
Holding steady here with ES and APPLE longs--- early on the APPLE, but should pay handsomely... upside explosive potential still pending----
I like the ES long tomorrow. I think the market does overreact like surf says, but going long at this point involves a lot of risk.