Satuki @ Home

Dow was down 200+ points in the AM and had a dramatic reversal toward the end of the day. The reason was that there are some rumors that the President is working on a plan to subsidize mortgage payments for troubled homeowners. No matter how you look at your charts, you can not predict something like that unless you trade inside information which is totally illegal. There is no need to over-analyze your charts. We react to news which is reflected in price action. We can find out the “why” after the market is closed.

My accuracy today was only 50%. I took 4 trades, 2 tiny losers and 2 big winners. I am up 1200 for the day. Let’s take a look at the first 2 losers. TZA had a ugly chart. I did not realize that after I opened a long position in it, my stop loss was around 3% for both TZA and FAS. When TZA rebounded, I quickly got rid of it since I had realized that the chart was super ugly by then. However, FAZ was fine. So it stayed. Nothing exciting happed to FAZ before the noon. So I closed it with a tiny loss and decided to look for a good entry in the PM. I dislike stocks that keep chopping around. I love movers. Who doesn’t?

After a sweet little nap, I woke up fully re-energized. Nothing was too bad in the AM. I just lost 50ish. FAZ went up big when I was napping. I was thinking that the SRS trade repeated again. It moved without me. How dare you MR. FAZ? It was up close to 17% by then. I was thinking how much more up it could go. So I test shorted 200 shares at the first sign of resistance. And I added 200 more on its way down. I was going to add 800 more to make it 1000 in total. But I pulled back thinking why I need to take the risk. I am already up nice this month. One of my rules is to scale back on a winning streak. So I had a total of 400 shares of FAZ short. It turned out to be a great trade although i left half money on the table. After FAZ started to drop, I was chanting something like “No Fear, No guts No glories” on Twitter. That was all bravado as you can see how quickly I covered. But still I was up 6% on that trade. LOL. See my full daily updates on StockTwits

I opened a swing long in ERX. Let’s see how it plays out. On a side note, I made 6 dollars in HES after 9 days. In fact it hit my standard 15% profit target. So I was up 1500 on paper in HES. But somehow, the order was not executed. One good thing about not looking at my swing account during the market hours is it helps me control my emotions. One bad thing is sometimes the software just malfunctions. My target for leap is 20% minimum.