The market was bearish for the first 1 hour, however, there was a lot of Gap up when market opens, thus creating a problem to predict price movement.
However, bearing in mind that no 2 days are the same in the market, I searched relentlessly for counters that had a clear bearish signal.
Of course I had to be carefull as the both the dow and s&P was showing some bullish sentiment.
I stumbled upon GS (Goldman Sachs) first which had had a strong downtrend which I predicted will last for at least about 45 minutes. So Got in on a put for 3 contracts
My next trade was not a good one. AAPL Put(Apple) put with 10 contracts. This trade was bad as the downtrend was shortlived. A good trade would have been RIMM PUT(Blackberry). But I failed to catch the tailcoat, as RIMM was already very low, and I wasn't confident that the drop is sustainable due to the very low RSI of 35, but it did drop further anyway, so it shows that there are no hard and fast rule for technical studies.
Next was SCHN Schnitzer Steel on 6 contracts of Put. This counter had a strong downtrend and manage to close my position at the lowest price.
No comments:
Post a Comment