Well, looking at the yesterday’s red candle and today’s little rally, it was sounding as if my guess from yesterday was somewhat true. I guessed that market would go up in the morning then go lower later on. Once the market was at 200 points, it slowed. So I entered two trades to the short side. Bought one AAPL put and 2 BAC Puts. Was slightly up during the late afternoon but towards the end of the day, due to the rally, I’m down a little.
1 AAPL Dec. 79 PUT at .97.
2 BAC Dec. 7.50 PUTs at .19.
Let’s see how this works. Forgetting the DOW divergence that i’ve been seeing for days, this is the current market trend. Up down up down. Once way too much then corrects. But it hasn’t really ever moved down one and then corrected itself the next day. It has recently gone down 3-4 or even 5-6 days before correcting back for 2-3 days. So after a 700 pt drop, it would seem ok for it to go up 200 points and then resume temporary downward move.
In the long run investors could already buy good companies at these prices and forget about them for a while. But what is a good company? Comapnies that used to be good aren’t really great now. They’re all showing crashes and crisis.
Better to wait a little more.