Beginners Guide to Trading this past year. I think this video pretty much sums it all up!
This week showed signs of improvement in the US while the EZ Bonds yields continued to explode. World central banks confirmed that things are bad banks getting downgraded but we rallied 7.3% for the week. Last week we were in extreme oversold area which can explain the huge bounce. Those who went in all out long last Friday took a Huge risk. Good, Lucky or Stupid? Either way it builds bad habits that will eventually pay the piper.
Last Week I started the Week with 26% of my portfolio exposed to the markets net short for exactly the reason of what happen last week. This week I will reduce my exposure even more down to 10% Net short again especially if we see a Gap up. The SPY has come to profit area and bounced off of it. Could it continue to go higher? Yes anything is possible. It will be an important week to see how it plays out.
SPY
SPX Monthly
Big Picture Analysis on a monthly chart. Are we near a point where the chart is saying " Gentleman prepare for radical vertical impact demonstration!"? I don't know but I did nibble on a few SPX Leaps late Friday. I plan to sell monthly and weekly puts to generate some income.
Good Trading this week!
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