I bought a MA Jan08 $210 Call for $9.
I bought a BSC Jan08 $100 Put for $12.
Will buy another one to average down the cost if necessary.
09 November 2007
9-11-07 : Another bearish night
GOOG and others cont to free fall. GOOG in fact fell another $22 to $671 now at around 11pm.
Its time to hold most counters till trend is established.
MA and BSC however, can see call & put opportunities due to break of boxes.
MA break box up, and despite bearish sentiment overall, remains above the box.
MA daily
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BSC breaks 100 down, and remains down for now. We may go for BSC put after it has rebound to 100 level, and fall again.
BSC daily
=========
Its time to hold most counters till trend is established.
MA and BSC however, can see call & put opportunities due to break of boxes.
MA break box up, and despite bearish sentiment overall, remains above the box.
MA daily
========
BSC breaks 100 down, and remains down for now. We may go for BSC put after it has rebound to 100 level, and fall again.
BSC daily
=========
9-11-07 : USDCHF is falling too fast
No idea whats wrong with US, but share prices are falling, currency is falling. Hmm... USDCHF is now falling real fast. Those who have shorted it is very profitable now. THose who have not shorted it, i dont recommend doing so, as we dont know when will rebound happen, which will be around the corner. Just consider this an opportunity missed.
daily
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daily
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8-11-07 : The falling knife - GOOG
Retracement was due for GOOG and BIDU as i mentioned earlier, and so they were. They dropped like falling knives.
If you want to catch a falling knife, when is the right time to catch it so that you are not badly hurted? Can technical be used to catch a falling price, and profit from the rebound which will come for sure after the sharp fall of $40 per night?
Yes. Daily chart is not much of help in catching the bottom of the fall, but 15min chart proves to be useful.
Towards the bottom, 3 signals appear :
(1) Break downtrend line for 15min chart
(2) MACD cross up again at -30, extreme negative value
(3) strong support at 680, with 2 high lower tail supports, and a tweezer bottom.
At that price, option is not at its lowest ($8.10), but at least around a cheap price range of $9-$10.
The option has fallen hard, which original price was $33 when opened. And its only 6 more days left to expire ($710 Nov07 call).
If you have caught the rebound successfully, then thats your prize :
Buy @ $10
Sell @ $13.50
Profit = $3.50
duration = 1hr 45mins (from 1.30am to 3.15am).
daily
------
15min
-----
If you want to catch a falling knife, when is the right time to catch it so that you are not badly hurted? Can technical be used to catch a falling price, and profit from the rebound which will come for sure after the sharp fall of $40 per night?
Yes. Daily chart is not much of help in catching the bottom of the fall, but 15min chart proves to be useful.
Towards the bottom, 3 signals appear :
(1) Break downtrend line for 15min chart
(2) MACD cross up again at -30, extreme negative value
(3) strong support at 680, with 2 high lower tail supports, and a tweezer bottom.
At that price, option is not at its lowest ($8.10), but at least around a cheap price range of $9-$10.
The option has fallen hard, which original price was $33 when opened. And its only 6 more days left to expire ($710 Nov07 call).
If you have caught the rebound successfully, then thats your prize :
Buy @ $10
Sell @ $13.50
Profit = $3.50
duration = 1hr 45mins (from 1.30am to 3.15am).
daily
------
15min
-----
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