Feb 28th – Gap down open

A gap down open. Does this fill like last week?


We have a consolidation area between 139.30 and 137. I tried to exit my SDS in the premarket but I missed by a few cents. We may retest the highs this week, but I am betting against it.
5 minutes after the open I went short ATI, GS is getting slammed. I would like to sell 1 more call spread if we can see a pop. But at this point, that is mostly a hedge. I am leaning short.
30 minutes after the open the A/D line was 77 to 418 in favor of the Bears.
Just listening to President Bush has me leaning toward going short into rallies. Granted, that would be the toughest job I could imagine. But you do get a kick ass set of tools.
Morning Trades:
ATI – Apr 80/70p for 2.55, 2.47, 2.30 with underlying at 84.22, 84.61, and 85.35.
The yellow line is the neckline from a rollover breakdown. I like the odds of this trade.
ATI%202.28.gif
SDS – Trailing a .60 stop, thereby locking in a profit. I was stopped at 60.51. It hit my price and then returned to 61. dang it.
GS – Exited final two positions of this trade. Although my initial plan was to hold this trade for a few weeks. The 2by3 170/185c ratio backspread volatility swelled so much that I had to take the offer. I exited these last two units for 1.10 and .60. Simply killer. Took in an average of a 2.80 credit and sold them out for these prices. Amazing. The odd thing was that I that the underlying dropped in price 176, and these positions still exploded. Gotta love volatility when it is on your side.
ENR is turning out well, and my UST calendars moved out nicely today.
When all was said and done today my acct was up 1.3% on the day. Awesome. And I am happily sitting in 83% cash. Next.

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