Monday, August 10, 2009

Credit Spreads, XLF, SCHN a short, and ES play of the day

Entered a few credit spreads, just posting for now. Will analyze with expected max profit, expected max loss (based on executing a stoploss if trade starts moving against the position).

Notice how I said moving "against the position" as opposed to "against me". Thats because me and my ego have no relation to the little mouse clicks that I make that we call trading or investing. You have a trade idea, and if it was wrong, suck it up and take a manageable loss.

XLF seems to be a good measure of a blowoff top, just guessing that it would want to tag the 38% Fib, and that is many percentage points away, like 20% of the ETF current value. Just keep that in mind for how crazy these valuations could get, esp if J6P rushes in to avoid missing the rally, ouch.

SCHN -- well looks like a short.

Last chart, just ES during the night and day. I played the H&S for a nice move and covered at the expected bounce point.

VIX is up, UUP (dollar) is up (no pun intended).

Media is getting more insane on how "Big Gov has fixed the world". Seriously folks, is there one living organism in the universe that possibly thinks that the Gov having more of our money to spend, and trying to run things, can possibly be a good thing?

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Insightful and Useful Comment!