Few Thoughts: April 19th, 2009
April 19, 2009 – 8:30 pmMy apologizes to my readers but again, my access to a viable computer is very limited.
As most of you already know by now, I have withdrawn alot of the funds from both of my trading accounts. If you follow me on twitter, the moves I have executed in these portfolios has been rather non-existent to say to least. This is not because I am abandoning trading, but it is because trading has become way to difficult (at least in my opinion). Look below to see what I mean:
Exhibit A: Times like last year where the market would waterfall, trading was very easy. Shorts and put options could be held overnight without much risk of losing money the next day. Heck, even buying call options and going long was simple. Take a look at the purple highlighted area…..just too easy…
Exhibit B: Over the month or two, trading has been absolutely miserable. The last time I checked, I believe I have actually broken even between all the trades I have done since the beginning of this year. With that being say, alot of hard work was put into make zilch. The red highlighted areas are what I am talking about.
Heavy short selling will return soon enough, but now is not the time. The run we have been experiencing was to be expected sometime or another. You could call it the “great bear market rally” for all I care, but it must end soon enough. I close this post with a bullish proposition in the short term, but a great short telling opportunity in the coming months. Gold is setting up nicely for a multi-month rally to about 1000 dollars an ounce. What do you think I will be doing after that happens?
