8/16/2007 – World Markets crack, (then rebound?)

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Worldwide panic this morning. I am looking at the short-term bottom here. Insane selling this morning. Amateurs at the beginning, pros backed it up.


Worldwide panic this morning. I am looking at the short-term bottom here. Insane selling this morning. Amateurs at the beginning, pros backed it up. The averages penetrated support and then rose with a fury. The S&P down 35pts!, then came back to finish up 4. Insane.
Lots of opportunity today! I had 71 orders on and then I left for Elitch Gardens in Denver with Sadie and Christian. That should be fun. It may be the last weekday day of the summer for us all just to get away.However, I just love the weather up here. 74* yesterday, 44* in Breckenridge @ 7:45. Very nice.
MStrong – I feel for ya man. 102* in Kansas, yikes. Let’s get you trading and doing some PPL, have you move to the mountains where you belong.
The Federal Reserve Movie: Part 2 of 5 This is good stuff, it make one think about what he/she judge as real.

Might you think the FED wanted to get rid of many of the small lenders in favor of a few large banks. i.e. WFC and BAC? The same basic scenario is happening now in the mortgage industry, that happened in the late 1920’s in the Banking industry. Small banks/lenders being absorbed by the big banks.

I exited my ICE verticals this morning for a very nice profit.
Sept 140/125p sold for 9.00, bought for 5.40 yesterday. and Sold 140p/120p sold for 11.25, then 12.50, bought for 8.50. I’m out. Very nice.
TOL – I exited the 4 units 25p calendar for .12 and .13. I purchased them for .03. The price has moved down quickly in TOL. (They were marking for .05) A small profit for this hedge to the upside. I sold 6 units of 22.5p calendars for .20, .24, and .25 today. With earnings coming out next week, I would like to be out of this first wave of buys. I may re-enter prior to earnings if I can get the right price. This has been an excellent trade.
IVN – Bought 4 units 10p Dec/Jan calendar for Even-.04. This builds the position. I bought the 12.5p yesterday for .02. I am looking to exit those. They are looking very good right now. IVN has support @ 9.
ONXX- Sold 1 unit 25p calendar for .15, I have 3 units left. Earnings Sept 5.
Trade Entries
LCAV – 4 units each of 30p and 35p calendars – Ave entry .04, and even respectively. I may pick up more of these tomorrow.
ACF – this is MONSTER. 12 units of the 17.5p Nov/Jan, and 1 unit of the 15p. Entry prices, .01 credit and .05 respectively. This two month spread can really open wide. The risk reward on this one is ridiculous, I kid you not… 180:1 (including commission costs).
Everything else looks really good. You gotta love that volatility. It looks like I can delay getting a job for another day.
It was my best day even. To earn more in a day than Ski School pays me in a season is just plain ridiculous, and to be riding rollercoasters from 10-2pm. Pretty cool.
Just so you didn’t think I went soft after yesterday’s selection. I think this is perfect for the current market! THUNDERSTRUCK!

Disclaimer: I am not a financial advisor, broker, etc. This is not trading advice.

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