Wednesday, November 03, 2004

What A Day!

"Don't try to buy at the bottom and sell at the top. It can't be done except by liars." -- Bernard Baruch
Wow! What a day. We got the presidential pop in the market. Now, we wait and see what happens next. If this is indeed the mid-term, are we fixing to see a fight. The bulls are plenty and out in force. I haven't seen this level of speculation in a very long time. So, if a top is in...expect the next few days for the market to do everything in its power to reach and then break this morning's high.

As you can see, the market popped this morning and then spent the rest of the day selling off. I got my opportunity to short some more at the opening. Was it a tough short? Yes. Even tougher to read article after article discussing the bullishness of the market and this economy. My next moves are the following:

  1. If the market can exceed today's high over the next few days then I'll be forced to close my short positions and rethink my strategies. In fact, I'll probably stick to what I do best...system trading.

  2. If the market cannot exceed today's high and begins breaking down...I'll probably place my final short on the market. Or I might perform some searches for individual stocks to short.

Here's a quick update on how my daily systems are doing (of course I'm out of these):
  • 1 QQQ system sold at the open this morning for a 2.94% profit.
  • 3 QQQ systems are still open with a current profit of 1.99%.
  • 1 QQQ system is still open and up 1.35%.
  • The MCD stock system is still open and up 2.30%.
  • The CVT stock system is still open and down -2.36%.
So, in looks like staying with my systems would have been the smarter choice. I'll continue to monitor the systems and update the site with the results.

The next few days are going to prove very interesting.

Later trades.

No comments: