Update 5/27/10

Today was a big upday in the Markets. I did not trade today cause I was too busy with work and took a loss of Approx $350 the past 2 days liquidating positions and bad trades entered due to not following my rules so I decided to take the rest of the week to regroup and watch. Following are the trades I did, the reason I lost and the particular rule I disobeyed:

- Bought $GS Puts - I bought the puts on a gap down day before 10:00am and did not wait to determine the direction the market would move in. Instead, the market opened down, I put the position on and the Market bounced. - Disobeyed Rule #1

- Shorted 1 $ES Futures contract - I shorted 1 contract effectively while working and made approx $90 on the trade. The E-mini's bounced a bit and I shorted it again. The second time I went short, my broker went into maintenance and I could not cover the short for about an hour. If I would have immediately placed a stop on the trade, this would not have happened. I gave back the $90 plus an additional $150. Disobeyed Rule #2 and maybe even Rule #8.

Back to the Market! The S&P bounced back today with Futures up in the early AM by almost 3% basically due to a bounce in Asian markets and news regarding Treasury Secretary Geithner pleaing on European reform to help stabilize the Euro. So far, the S&P has held the Feb lows mentioned in the previous posts and has bounced from there a few times. All indicators are currently pointing to an over-sold market thats ready for a bounce. I am not saying the market cannot continue to drop, I'm just saying, its due for a bounce. Even if its a small one.

The Market held the gains all day and closed stronger at the End of Day. This could be a positive sign but the over all volume was light and we are going into a long weekend on Friday. Many people dont want to hold into the long weekend taking into consideration the current uncertainty.

S&P Daily





For now, I'm sitting on the side lines and might do some virtual trading. I have to obey my rules!