Wednesday, December 29, 2010

Bought the Dip, Fear Factor, and The PM Exuberance Index

I bought the dip on the PRS on ES.

A break of this PRS will be very bearish, and in this manipulated market, of course the HBB guys are using State Pension funds to keep buying the market up.    Everyone wants an up market, except reality and the Piper who will some day collect his due.

For now, bought the dip, but will probably close for a measley couple hundred dollar run.   Playing very small, 1 contract.  

Bought DNN yesterday at 3.29, it is moving nicely upward.

I don't want to hold too many positions over the New Years, since that complicates the P&L tax filings by having to keep track of crossover positions.    And the gains and losses and figuring the basis for the purchase IS NOT usually computer generated.   Esp. with options, and futures, every trading service tracks them differently and ultimately the ball is left 100% in your hands to reconcile everything.

Next year, apparently, the brokers are going to be required to keep track of the basis and report it to the Fed Gov.    Keep in mind, that doesn't mean they will necessarily report it to you in same or usable fashion, although  I suspect that they would.   However, past history shows that the brokers never really cared much about your tax filing.

PMI-E is showing a blow off shooting star type "top" far outside the Bollinger Band, this should signal a drop on precious metals.   Other instances have been shown a drop after the BB was popped

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