I was hoping to post something to this blog before this, but I never found the time. I’ve been keeping up with the stocks I am following on my indicator. My paper trading account has suffered some reversals. It is now in the low $6,000.00 range. To stop the bleeding I got rid of my DNR options. I had to sell 12 such options for .15 apiece. I also sold my TCK options that were starting to lose money. TCK bounced off of its 20 period moving average to a new high. I will not get back into TCK on the short side again until it breaks below its 20 period moving average. Altogether between these two positions I must of lost between $700 to $800 dollars. I do not think that this drawdown has anything to do with disproving the usefulness of my indicator. I believe that simply at one point I was too long the market and now I believe the market is definitely taking a downwards direction. My indicator has been demonstrating this as several stock are close to giving a sell signal and one already has. The stock CX (Cemex) has just given a sell signal by moving below the centerline of my indicator to -.03. Others that are near giving a sell signal include MTW which for a second day is at .0 on my indicator. There is OAS that popped to a high of .63 on my indicator and has now fallen to .2. There is CBG that popped to .1 from .0 on my indicator due to the upday in the market yesterday but look ready to turn back down today. I plan on buying CX options today and look forward to buying puts on these other positions as they give sell signal. If the market will take a violent downturn as I am expecting having all of these short positions will prove to be very profitable and erase any drawdowns I may have taken.
This weekend I will be playing chess at a chess tournament. I will also try to do what I failed to do last weekend and associate all of the stocks that I am following with their various sectors. Hopefully I will also be able to provide full commentary on each one of my games on facebook. I also want to post to this blog again. So long for now.