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Tuesday, March 10, 2009

Depression Posts Call a Bottom

Posted by Mark at 11:25 AM TweetThis
As I wrote the previous two posts last night I said to myself surely this must mark the bottom, when I type about Depressions. Sure enough....

I have not been online since the trading day started - this is how bear markets snag even the bears. Logged in 5 minutes ago to carnage. We were not positioned for this rally and are suffering a 2% loss overall due to our short hedges; for now I am going to purge the hedges and take a time out and re-assess. I had a very very large short Ultrashort Financial (SKF) position on late last week which was supposed to save me on a day like this (and killed us last Thursday when the market plummeted 4%+), but I was squeezed out of it by the reversal down yesterday. Tough market....smarting today, definitely! We did call for an oversold rally "soon" but its much easier to call for it, than be positioned for it - yesterdays swoon completely messed up our positioning. You should not "close on the low" for the day and then have a huge day the following day. This is not a market you can be away from the computer for any length of time without the potential for serious losses.

Regrouping. Like is much easier as a pundit just calling for incessant bottoms.

Posted by Mark at 11:25 AM Comments (4) | Edit This Post | Create A New Post

4 comments:

Anonymous said...

But you weren't saying "sell sell sell" at the bottom like cramer was yesterday.

He was all out gloom and doom on his show and stop trading (really "stop profiting")

March 10, 2009 12:07 PM  
Anonymous said...

This one is actually quite funny.

http://www.huffingtonpost.com/2009/03/10/jon-stewart-rips-into-jim_n_173454.html

March 10, 2009 12:15 PM  
TraderMark said...

Anon #1 I know, but I am a perfectionist. The way I was positioned last Thursday i would of been up 12-14% today ... my gosh how quickly the worm turns. Bugger.

Anon #2 yes I saw that and Stewart is so right. Again.

For now I need to get my bearings straight before I rip into Cramer more :)

March 10, 2009 12:29 PM  
Billman89 said...

It's Bill

The guys in the links I sent you were mostly bullish...there was many divergences in the financials yesterday and S&P....especially on with secondary indicators refusing to make new lows with the market....accordingly FAS is up like 25% today. I know a ton of guys, the masters of T/A I try to learn from, who loaded up on the calls yesterday..i heard there was massive call buying in FAS vs. put buying, of course i realized that last night after A/H trading closed.

i got lazy don't feel like logging in all the time, sorry about that.

March 10, 2009 12:53 PM  

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