This market is just getting more and more volatile. In reality, I keep hoping for an upturn soon. Mainly because of the MSFT calls I’m holding, but it hasn’t happened yet. On the other hand, it was over two weeks ago that I was hoping that MSFT would be way up by now. I was confident that these calls would not only be profitable but might even be doubling the investment. But I hadn’t ever seen the time value corrode in realtime before. So here we are and the time value is dropping fast. My sell to close order hasn’t executed in days despite constantly being lowered. An idea occurs to me. Given time, I could send more money to the brokerage and buy crap load of calls at .01 and then my .44 average would really be down to .1. Then I could get out at .05 and it would still save me half my original investment. However, while buying 200 contracts is not a problem at .01 (it’s only 200 dollars), the per-contract commission per trade will be is $100 (at .50 per contract). So there’s a big loss on that front. It would seem to be better to just leave it alone.
DOW closed lower on higher volume. Scary. I could have played some DXD calls or something like that and it would actually had made money. However, with each pullback in the downturn, it seems as if the bears have beat down enough and a rally is starting. Then the fear of losing money kicks in. Then it falls again. Only showing how much money could have been made. Since the market has been down for so long, it seems as if a good rally will take place soon enough. Simply because it has been down long enough and lot of investors and traders would be eager to get back to work. However, that’s what I thought two weeks ago and a rally took place but the markets fell right back.
The one comforting thought in this is that the DOW still made a higher low than the previous low. RSI headed down, Buying pressure turned into big selling pressure. Still less selling pressure than before. This candle was almost a black marubozu. Which is strong down candle. So it would seem a little pullback tomorrow should be in order. But again, some numbers are to be released tomorrow. Those might have already been priced in today’s fall or might still affect securities when released.
