Stock Market Day-Trading Discussion Thread

[quote author="usctrojanman29" date=1227222203]Wow, the 1-month and 3-month T-bill are yielding .01%...I'm really concerning that we may be looking at a HUGE short covering rally in the near term (hopefully next week). Oil is almost at $50...WOW.



Another WOW, GS breaks below $50 a share and the $70 calls bid goes up to $.06 and the ask goes up to $.09 (guess the volatility is climbing).</blockquote>


Volatility is definately climing. Bank of america went down 1.3 today or 10% but the dec 20 calls are up 42% and climbing. Every tick BAC goes down, the calls go up...makes no sense...Big call buy volume.



But CSCO and AA call is down relatively to the stock price.
 
Well I just bought BAC calls and CSCO calls 3k in each. Doing a play for today and possiblity tomorrow to capture a rally.

Also, picked up some AA around 7.30
 
[quote author="blackvault_cm" date=1227224458]Well I just bought BAC calls and CSCO calls 3k in each. Doing a play for today and possiblity tomorrow to capture a rally.

Also, picked up some AA around 7.30</blockquote>
I am doing a small straddle on the QQQQ. Picked up 5 Nov 29 puts @ $3.50 and 10 Nov 26 calls @ $1.10.
 
[quote author="blackvault_cm" date=1227224781]This market is funny...we have a small short squeeze going on now...i'm hoping it builds into a bigger one...</blockquote>
Picked up 100 shares of BAC @ $12.25 and 100 shares of CSCO @ $15.28.
 
[quote author="usctrojanman29" date=1227222099][quote author="BLUE FIRE" date=1227221836][quote author="usctrojanman29" date=1227221164]So far so good, GS is down 3 to 52. The bid on the calls are now down to $.04 and the ask down to $.05.</blockquote>


Or what about selling the Nov 35 or 40 puts?</blockquote>
Good point because the premiums on this stock are outragous. I might sell maybe like 10 of these puts by the end of the day if we continue to trade lower at a higher price (even the 30 puts).</blockquote>


Sold 20 GSWU (Nov 40) @ 0.8
 
[quote author="BLUE FIRE" date=1227236813][quote author="usctrojanman29" date=1227222099][quote author="BLUE FIRE" date=1227221836][quote author="usctrojanman29" date=1227221164]So far so good, GS is down 3 to 52. The bid on the calls are now down to $.04 and the ask down to $.05.</blockquote>


Or what about selling the Nov 35 or 40 puts?</blockquote>
Good point because the premiums on this stock are outragous. I might sell maybe like 10 of these puts by the end of the day if we continue to trade lower at a higher price (even the 30 puts).</blockquote>


Sold 20 GSWU (Nov 40) @ 0.8</blockquote>
Nice trade, good luck. I think your play will pay off like mine (unless we have a blow up to the up or downside).
 
LOL. This is like watching a movie that provides high adrenaline. This is amazing. Unlike I've ever seen. This is why its important to have a fair amount of cash, for moments like these and futher moments.



BTW Usctrojan, did you ever buy those FSLR puts I recommended? Its down to 85 bucks.
 
[quote author="blackvault_cm" date=1227242681]LOL. This is like watching a movie that provides high adrenaline. This is amazing. Unlike I've ever seen. This is why its important to have a fair amount of cash, for moments like these and futher moments.



BTW Usctrojan, did you ever buy those FSLR puts I recommended? Its down to 85 bucks.</blockquote>
Unfortunately no, totally forgot about it. I sold my 10 QQQQ calls at around 12:15pm at a loss but still holding onto my 5 Dec QQQQ puts.
 
Shorting is really being stretched. When we finally have a rally, it is going to be viscous. I would hate to be caught in shorts when the squeeze happens.



I'm going to buy more CSCO and AA tomorrow. I can't believe how low AA is.
 
[quote author="blackvault_cm" date=1227273075]Shorting is really being stretched. When we finally have a rally, it is going to be viscous. I would hate to be caught in shorts when the squeeze happens.



I'm going to buy more CSCO and AA tomorrow. I can't believe how low AA is.</blockquote>


100% agree. Watch out for the short covering rally. Mabe 1000 points in a day.
 
[quote author="morekaos" date=1227273796][quote author="blackvault_cm" date=1227273075]Shorting is really being stretched. When we finally have a rally, it is going to be viscous. I would hate to be caught in shorts when the squeeze happens.



I'm going to buy more CSCO and AA tomorrow. I can't believe how low AA is.</blockquote>


100% agree. Watch out for the short covering rally. Mabe 1000 points in a day.</blockquote>


1K pts easy. I still think at some point we head to 7K, take a piss and pick up some snaks and time-warp to 1995. (4,100 DOW)
 
Holy sh*t! I can't believe what I am reading, both guys who have proven themselves on IHB to be right, morekaos and BV, are calling the mother of all short covering rallies. That's it! I am buying calls on the ultra long index ETFs. In a way I am being snarky, and in a way I am being dead serious.
 
as of now, dji futures +257 its midnight.



i understand everyone says you can't time the market, but is there a way to capitalize on this?



like say i wanted to get SSO, by the time the market opens, it will already have jumped in price. so if i buy at market opening, i could risk losing if things take an immediate skydive.
 
Holy mother....if the futures hold...this is going to be a nasty nasty day if you're short. You will be bent over and handed to. This is exactly why I said yesterday not to short and use puts in case of something like this. Good luck.



If your plan is to buy calls or get out of your short position in the short term in anticipation of a rally, then you have plenty of chances to do so...this market is basically break-even giving you that opportunity. I've added to my calls on BAC, AA, CSCO and MT. Long term I'm still bearish.
 
[quote author="ocrebel" date=1227160537][quote author="ocrebel" date=1226803465][quote author="blackvault_cm" date=1226765024]



Right now my strategy is still to be short in the next month or so (or longer once more economic data comes through) but I'm also starting to build a long position slowly. For example, I purchased 2000 shares of Intel, 1500 shares of Arcerol Mittal, 200 shares of Burlington Northern and 500 shares of Best Buy and immediately wrote December covered calls to give myself some cushion. </blockquote>


based on my EW count, next week marks trade-able multi-month bottom.

Economy is in for a long and deep slump, ultimate bottom will happen in 2009.</blockquote>


I will start gradually buying SSO and UYG as soon as we break below 80 in SPY. I expect the bottom in 75~80 area. Once it's confirmed I will load up the boat. IMHO, the rally, though choppy and violent, will last few months into Obama's inauguration.

anybody cares to share his/her strategy?</blockquote>


Starting from 1007.51 (Nov. 4th), wave 1: 818.69 (Nov. 13th), wave 2: 916.88 (Nov. 17th), wave 3 is now complete. We are in wave 4 now, expect to re-test the low or go lower in wave 5. once wave 5 is finished, big multi-month bear market rally starts.

I will sell my SSO and UYG into further strength
 
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