Just for fun, certainly not advice, and, I could certainly be wrong, but I believe that the US stock market hit an intermediate bottom today. I am buying tomorrow.
Public humiliation for me if I am wrong.
(P.S. really, don’t just invest your life savings tomorrow, I just wanted a date and time stamp on the post for documentation)
What was the Dow when it hit the intermediate bottom.
It is down a further 36 points at 10202. I see it drifting towards 10,000.
I bought the Semiconductor index proxy at 36.05 this AM, and it is up .98 (2.67%) as we speak. The Semis are leading the Nasdaq higher. The Dow will be the last to go up. Watch the Friday close as a short squeeze may develop, with further follow thu on Monday.
Put/call ratios were very high last night (bullish), and TICK numbers showed panic selling this AM. Dow will be the last to respond, as it has a lot of financials, and interest rate fears will keep it moderate. Tech should rock.
Dow hit low of 10189 this AM.
Are you an active option trader. I deal quite heavily in traded options, mainly on the UK market but also a certain amount on the US market. Mostly I am a writer rather than a buyer. A heavy put writer at that. I tend to cover my written index and equity puts by shorting index or individual equity futures if the market moves against me.
I used to trade options quite a bit, but am not a great option writer. Lately I have traded the SMH, as a proxy for the Semi's, and sort of the canary in the coal mine of the market. Very liquid, highly volitile, and somewhat linear. As the semis go so goes the Nasdaq, and so goes speculation.
At times I have played the Semi conductor index but found it too volatile. The movements can be quite fast and consequently the spread is quite large as well. Is that your experience as well. For tech I normally stick to QQQ. Again I deal in the options rather than the QQQ share itself.
Ohioguy and Ehsan Bhai,
Have you guys traded in Forex??
if yes what is your opinion?
Aejaz bhai I have not traded in Forex. My main trading has been in equities, bonds, traded options and futures. The last two related to indexes and equties rather than forex or commodities.
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*Originally posted by ehsan: *
Aejaz bhai I have not traded in Forex. My main trading has been in equities, bonds, traded options and futures. The last two related to indexes and equties rather than forex or commodities.
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Ehsan Bhai
I was doing some research and found, that the forex market volume in US alone is more than 300 times more than equities volume universally.
amazing isnt it???
On May 7, Dow lost another 100 some points, or so I heard. So, is NOW the intermediate bottom?
Dow has touched 9980 today intraday and might even go lower. With rising oil prices I dont see the markets recovering or moving up strongly any time soon.
oil prices will be dropping, SA is calling for an increase in production.
It has recovered from its intraday low of 9935 and is hovering around 10,000. Will be interesting to see where it closes today.
Asian markets were down 3 to 5%. Last week the dollar started to rebound, which should bring investment into the US market. The Semi's are still trading dry, and the Sand P and Dow may have hit lows today.
My guess is that tech will lead the market up the rest of the week. by the way, I consider Intermediate term to be 3 to 6 weeks.
^ I suspect that they might have hit the lows today but I will still wait to see where it closes. A close below 10k could trigger further selling in the far east and europe.
Sold out last night at 37.84, as all the indicatros were at the top of the range. Good thing too, semi's are getting slaughtered, down almost 4% today. Put/Call is extremely high, volatility is high, sentiment indicates a lot less bulls, and a lot more bears. Gonna be a difficult bottom to call from here, really sloppy.