Irrationally mad decision making to obtain the American Dream.

Posts tagged “september 2008

the market screams! -700pt drop! what’s next?

watching Fox News they made some points such as wall street is having a fit over this bail not getting finished. for the most part i do believe they are just having a fit, it is just gloomy and rainy right now, but one something is stuck and works for “everyone” not just helping bankers the sun will come out. everyone will be happy, inflation will rise, oil will continue to go up, the president will just talk jargon politics, and life will go on in America.

i have to admit watching the tv screen with the DJIA dipping below -700pts shocked me. i’ve never seen it dip so much. tis true though that the stock market crash of 1929 which everyone keeps referring to, including the president, says we are nearing a depression. well if that was true then the markets would have to drop -50%!!!! the markets have currently dropped between 10-20%.

i didn’t get in any practice trades today either. i would assume the market will keep falling until a bail is passed. i suppose anyone that traded RIMM puts before earnings made truckload of money. earnings are always 50/50. i’ve learned my lessons and anyone that thinks they no better will be humbled by the market when their time comes…

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call options plays worked +45%, RIMM drops hard after earnings release, stocks bottoming

the market seemed to get more optimistic today. warren buffet’s edgy deal profiting from Goldman Sachs (GS) couldn’t hurt. without even looking at my charts i know that congestion would be shown with stocks starting to break out. after the market today Research in Motion (RIMM) dove down on earnings. it just shows how unpredictable stocks are releasing earnings. stocks across the board are down a lot and i’m curious if investors fear more after RIMM’s -20% drop. i do know also the Republican party threw out the bailout plan Democratics were happy with. i’m sure this creates some room for panic and turbulance in the markets as well. i will likely be practicing put options tomorrow unless the bailout plan is passed through law and okayed by everyone. should Fed bernaneke really be taken serious? if he just gave “why” an answer with “facts” rather then just vague statements i think everyone would take the Fed more seriously.

see below call option plays closed today:

call option plays

call option plays


put option practice plays – winning stocks i think that hit bottom

currently i’m trading all my favorite stocks as put option practice plays because we just had a mega short rally, the mini bubble burst, all stocks have doji evening stars, and show signs of at least short-term downtrend movement. however glancing at a few stock charts and know how much growth some stocks are STILL having i think HANS, NTRI, and AAPL are real winners and aren’t going to move much down anymore. For one thing HANS and NTRI have been stuck on the bottom for a while and they are slowly starting an uptrend. As for AAPL it has been on a bumpy ride, but going into the Christmas holiday shopping season it should have a better quarter in Jan 09′. Plus AAPL is selling millions of iPhones, regardless of a reduction in price, it is gaining growth market daily. NTRI and HANS are also at the top of Fortunes 100 fastest growing companies. NTRI has been having sour quarters, but still growing so when it does have a very good quarter the stock price could really run. ICE has a huge evening start stretching huge support and resistance on both sides. SWN and RIG are strong currently in energy sector. I think after this third top going down will be a strong support area and that will be the bottom for at least energy, excluding stocks like FSLR which I think could fall a lot more down. RIG has actually broken it’s downtrend so if SWN and RIG are positive this week I would think it is going to be the real bottom and start playing calls up.

see put option practice plays below:

put option practice trades

put option practice trades

Currently where financial institutions are going I would keep playing it a put until things really change. It seems tax payers are really going to burn for corporate errors again instead of the companies paying for their own problems. I admit if a person bought a home they couldn’t afford and they lost it I’m okay with that. It is not the banks fault, it is the customers fault for being stupid. But when the bank screws up I do not think it is fair when the big American federal reserve bank bails them out if it isn’t going to bail out the American working class (although if they did I would want a free house too).


second day rally continued. closed out call option practice trades +200%

Energy again performed best in my opinion. my lowest performing call option trade was GOOG JAN 420 call options. i suppose they only got 6% is because it’s such a big fat stock so maybe the options trade a bit slower with price increase. now just because today had a good continuing rally that doesn’t make me think this is the bottom or the new trend will continue. this could be just a bigger bounce. what the fed did or rumored to do doesn’t subtract the trillions of debt our country is in nor does it stop credit hungry Americans from spending their entire paychecks. my point is that we are a consumer spending society not a saving one. one of my co-workers was telling me its so different right now, people stopped spending, and i told him that’s bullcrap. the fact is where the people that messed up their credit with foreclosures and don’t have credit power anymore the new rich who sold their houses at the highs or becoming new landlords will step in and start buying.

here are my call option trades closed today:

closed out call options after second day rally

closed out call options after second day rally


put option practice trading plays still performing well. +270% today/SUM +190%

my put option practice plays worked out well this week. i would have traded likely AAPL put options as a real trade if my account wasn’t at $0 currently. if i had $100k i would have traded all of these confidently. this type of trade is the trade i need to look for with a rush of buying or selling, bounce, then trading on the bounce for the following day. since my currently goals are to pay off my condo repairs i won’t be adding any free money to my account. condo first, trading second. i think once the new president is elected there will be some great fat profit plays. i can wait until then. for now check out these great put plays that worked out as i thought they would.

most recent practice plays:

put practice plays middle sept 08

put practice plays middle sept 08

all practice trades together:

all current practice plays +200

all current practice plays +200